KKR, the private equity firm headed by Henry Kravis and George Roberts, has confirmed the purchase of software company Mitchell International Inc. from Aurora Capital Group. Aurora first acquired Mitchell back in 2007 for $500 million, and the rumored purchase price this time around is $1.1 billion.
Mitchell International is a software and information services company that primarily focuses on serving large insurance houses. Automated insurance claims processes have been, and will continue on, growing in popularity—making Mitchell a valuable asset.
The primary market for Mitchell is North America, but KKR’s purchase of the company is expected to bring about expansion globally. Providing services in Western Europe and Asia will allow Mitchell to grow even more and will potentially double its annual revenue, which currently sits between $300 and $400 million.
KKR is said to be leaving Mitchell’s current CEO, Alex Sun, and management team in their current leadership positions. This is in line with KKR’s past buyouts; while the current leadership will remain in place, KKR will oversee operations and provide advice and expertise to help the company expand.
The deal is expected to close sometime in the fourth quarter. KKR’s co-head of technology investing group, Herald Chen, said in a statement, “We believe that Mitchell represents an attractive investment in a market leader in an important marketing segment.”
Mitchell is just one of a few companies currently leading the automated insurance claims process in North America; CCC Information Services and Solera Holdings are the two other major companies that are currently dominating the industry.
Interested in learning more? Check out our profile on KKR’s co-founder and co-CEO, Henry Kravis!