Insurance software provider Duck Creek Technologies said it has entered into an agreement to be bought by Vista Equity Partners in an all-cash deal of about $2.6 billion.

Pending Duck Creek stockholder and regulatory approvals, the transaction is expected to close in the second quarter. Once complete, Duck Creek will become a privately held company. The agreement also includes a “go-shop” period to end Feb. 7.

“This transaction is a testament to the value of the Duck Creek platform, the success of our strategy and the strength of our incredible team. Following a deliberate and thoughtful process, the board approved this transaction, which delivers a great outcome for Duck Creek’s shareholders, providing them a certain and substantial cash value at an attractive premium,” said Michael Jackowski, Duck Creek CEO, in a statement. “Duck Creek is proud to have pioneered cloud-based, mission-critical systems for the P/C insurance industry to deliver a best-in-class customer experience. We are excited to enter the next chapter for Duck Creek in partnership with Vista Equity Partners to continue supporting P/C insurance carriers’ move to the cloud.”

Under the terms of the agreement, Duck Creek shareholders will receive $19.00 per share in cash, which represents a 46 percent premium to Duck Creek’s closing stock price on Jan. 6, 2023, and a premium of approximately 64 percent over the volume weighted average price of Duck Creek’s stock for the 30 days ending Jan. 6, 2023.

“Duck Creek is playing an outsized role in accelerating cloud strategies and unlocking all the advantages they provide this crucial sector of today’s economy,” said Monti Saroya, senior managing director and co-head of Vista’s Flagship Fund. “Duck Creek’s modern cloud architecture and demonstrated market traction position it to define the next generation of mission-critical technology for P/C insurance.”

Vista Equity exclusively invests in enterprise software, data and technology-enabled organizations. With Bain Capital, Vista Equity held ownership of insurance software maker Vertafore, paying $2.7 billion in 2016. Florida-based Roper Technologies then agreed to acquire Vertafore in an all-cash transaction valued at approximately $5.35 billion in August 2020. The firm also bought Applied Systems, a provider of insurance software and agency management systems, in 2004. Two years later, Bain Capital acquired a majority stake in Applied Systems from Vista Equity, with longtime chief executive Jim Kellner retaining a major stake in the company. In the past, Vista Equity has also invested in Zywave.

Earlier this month, Duck Creek, whose customers include insurers AIG, Berkshire Hathaway, Chubb, Progressive, AXIS and Markel, announced a definitive agreement to acquire Imburse Payments. Terms of the deal were not disclosed.