Software Firm Duck Creek, raised $230 million from new and existing investors ahead of a planned initial public offering.
The Boston-based company attracted Kayne Anderson Rudnick Investment Management and Whale Rock Capital Management as new investors, according to a statement reviewed by Bloomberg. The valuation of the company in the round wasn’t included in the statement.
The deal comes as the IPO market is roaring back after the coronavirus pandemic largely sidelined listings. Last week, more than $7 billion was raised globally through first-time share sales, the busiest week this year.
Used car sales platform Vroom Inc. scored the year’s second-biggest first-day pop, rising 118% in its trading debut, according to data compiled by Bloomberg.
Duck Creek plans to use the proceeds to invest in business growth as well as to buy back equity from certain existing investors, it said in the statement. The deal is expected to be announced Wednesday.
Duck Creek CEO in a statement described their “platform’s performance, particularly during these recent months as one that shows that SaaS can deliver new levels of value. He referred to this “software as a service’’ in which software licensed on subscription basis.
“We see growing opportunity for Duck Creek as more insurers accelerate their adoption of SaaS solutions for their core systems.”