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Buyout majors reach second bidding round for Aurora-backed Mitchell International

20 Aug 2013

collision-car-crash_sqA host of private equity majors are reportedly looking to pay up to $1.5bn to pick up US claims software company Mitchell International from Aurora Capital.

KKR, Warburg Pincus, Blackstone and Advent International are all into the second round of bidding for Mitchell according to Reuters, which cited four people familiar with the matter.

A $1.5bn sale would be a huge multiple of the company’s reported $90m EBITDA and a strong exit for Aurora, which invested $500m in San Diego-based Mitchell in 2007 as part of an investor group including General Electric Pension Trust.

They picked up the business from private equity firm Hellman & Friedman.

Founded in 1946, San Diego, California-based Mitchell provides information and software services to insurance companies and collision repair facilities, which rely on the company’s information to estimate labor times and the cost of replacement parts.

The sale follows January’s purchase of fellow claims software maker CCC Information Systems by retail-focused buyout house Leonard Green & Partners, which picked up the asset from the Middle East’s Investcorp.

Although full financial terms of the deal were not disclosed, Investcorp said in a statement that the sale unlocked more than $550m in proceeds for the firm and its investors.

Investcorp bought Chicago-based CCC in February 2006 for $495m.

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