William Blair analyst Dylan Becker downgraded Duck Creek Technologies to Market Perform from Outperform after the company entered a definitive agreement with Vista Equity Partners on an all-cash take-private transaction that values the business at roughly $2.6B, or $19 per share. The transaction is expected to close in Q2 and includes a go-shop period through February 7. However, with an implied purchase multiple of roughly nine-times subscription revenues for a business with implied mid-teens subscription revenue growth, the potential for upsized bids are less likely, Becker tells investors in a research note.
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