Verisk scraps $2.35B acquisition of roofing software maker AccuLynx – News

Insurance technology provider Verisk Analytics Inc. today scrapped its planned acquisition of AccuLynx, a startup that develops software for roofing contractors.

The company attributed the move to delays in the regulatory approval process.

In June, Verisk inked a definitive agreement to buy AccuLynx for $2.35 billion. The companies stated at the time that they expected the deal to close by October. They pushed back the date after the U.S. Federal Trade Commission requested more information about the transaction, which is often a sign that officials have antitrust concerns. According to Verisk, the FTC didn’t complete its review by the acquisition agreement’s Dec. 26 termination deadline.

New Jersey-based Verisk provides business datasets that insurers use for tasks such as monitoring the competition. The company offers access to more than 30 petabytes’ worth of claims, regulatory information and other records. It also sells software tools designed to ease the task of providing property insurance.

One Verisk application, Xactimate, creates a three-dimensional model of buildings that insurance professionals can use to identify what repairs are needed. Another tool estimates the cost of damaged personal property such as furniture. Managers, meanwhile, can use a tool called XactAnalysis to monitor the claims processing workflow for errors.

When an insurer approves a property loss claim, it assigns the repairs to a third-party contractor. Verisk sells an application called XactAnalysis SP that promises to boost such contractors’ productivity. They can use it to access technical information about a property in need of repairs, assign work to team members and distribute customer feedback surveys.

AccuLynx, the company that Verisk sought to buy, ships similar features with its namesake platform for roofing contractors. The software also covers several use cases that aren’t addressed by XactAnalysis SP.

If the information that an insurer or homeowner provides about a property isn’t complete, a contractor can order aerial measurements via AccuLynx. It’s also possible to purchase roofing supplies using integrations with several e-commerce websites. Once all the materials and measurements needed for a repair are available, managers can assign the project to a field crew through a mobile app.

AccuLynx includes accounting tools that track the expenses associated with each project. Additionally, they enable contractors to accept credit card payments and offer financing to customers. The platform also promises to ease several related tasks, including the process of ranking potential buyers based on the likelihood that they will make a purchase.

When Verisk agreed to acquire AccuLynx in June, it stated that the latter company’s technology could help ease the flow of information between insurers and contractors. The deal was also expected to unlock other improvements. According to Verisk, insurers could benefit from the data AccuLynx collects about the roofing materials managed through its platform.

Verisk took on $1.5 billion in debt to finance the acquisition. The company said today that it plans to pay back 101% of the loan along with accrued and unpaid interest. AccuLynx, for its part, has notified Verisk that it considers the termination of the merger agreement to be invalid. 

Image: AccuLynx