Glen Allen, VA – May 12, 2015 — DriveFactor Inc., a provider of a highly robust, flexible technology platform for insurance telematics and partner company of Safeguard Scientifics, Inc. (NYSE:SFE), has been acquired by CCC Information Services Inc., a leading SaaS technology provider to the U.S. auto insurance industry. Fairmount Partners served as exclusive financial to DriveFactor.
The DriveFactor platform measures, aggregates and analyzes driving behavior to provide actionable information to insurance companies, allowing insurers to offer Usage-based Insurance (“UBI”) policies which price risk based on actual driver behavior as opposed to formula-driven traditional pricing models. The platform collects data from a choice of proprietary smartphones, hardware and/or embedded technology, subsequently processing and storing the collected data in a cloud-based, big-data environment. Consumers receive direct feedback on their driving habits, thereby allowing the platform to influence consumer behaviors through the incentive to receive significantly-discounted, personalized rates by demonstrating better safety characteristics.
The combination with CCC will strengthen and extend DriveFactor’s technology to create the first full-service, open telematics platform for auto insurance. Steve McKay, Founder and CEO of DriveFactor, said, “Telematics is rapidly evolving and holds enormous potential for carriers to increase consumer engagement, strengthen loss ratios and improve claims performance. To realize the promise of telematics and stay ahead of the curve, carriers will need to access an array of technologies – from OEM systems to device and service providers. A full-service, open platform delivers choice and scale to carriers as their needs in telematics grow and change. I’m excited by the data, expertise and network that CCC will bring to our customers.”
“Steve McKay is an insurance veteran and telematics visionary. He, Mac Fraser, and the rest of the DriveFactor team have been pioneers in delivering a proven, device-agnostic platform for insurance telematics,” said Marc Fredman, Senior Vice President of Corporate Strategy & Development, CCC. “DriveFactor’s technology provides superior flexibility and data quality for underwriting and marketing, and by integrating telematics data into existing claims operations carriers will have the first full-service solution to satisfy their policyholders and improve efficiency. We’re excited to welcome the DriveFactor team to the CCC family and look forward to working together to bring sustained innovation to customers.”
Safeguard, a leading technology investor based in Wayne, PA, first invested in DriveFactor in 2011. Since that time, the Company has secured its position as a leader in UBI while growing its revenue through white-label opportunities with global partners. The DriveFactor platform accepts driving data from virtually any vehicle telematics technology and is easily integrated with a client’s enterprise system. At the time of the acquisition, DriveFactor’s platform was live in market on three continents, with a fourth continent going live in 2015.
“DriveFactor has built the leading independent telematics platform for UBI,” said Philip D. Moyer, Managing Director, Technology at Safeguard and Board Member at DriveFactor. “DriveFactor has been at the epicenter of connecting mobile, cloud, big data and telematics technologies into the automotive insurance and automotive manufacturing industries and its acquisition is an important milestone for Steve McKay, Mac Fraser and the rest of the DriveFactor team. The Company’s vision and technology have been widely recognized as pioneering. With its new parent company, we expect to see the DriveFactor team transform the safety of driving, the quality of underwriting and the overall consumer experience of insurance and driving.”
Fairmount Partners served as exclusive financial advisor to DriveFactor. It is the fourth transaction Fairmount has completed involving Safeguard Scientifics, Inc..
About DriveFactor Inc.
DriveFactor is a leader in insurance telematics, providing powerful, flexible technology and solutions. The DriveFactor platform is built on a dynamic, scalable architecture, accepting data from any input method and enabling easy sharing with business partners. The team has built its technology and apps from the ground up for insurance and applies its expertise to help clients customize telematics solutions to meet their near- and long-term needs. For more information, please visit www.drivefactor.com.
About Safeguard Scientifics
Safeguard Scientifics, Inc. (NYSE:SFE) has a distinguished track record of fostering innovation and building market leaders. For six decades, Safeguard has been providing growth capital and operational support to entrepreneurs across an evolving spectrum of industries. Today, Safeguard is focused specifically on two sectors—healthcare and technology. Specifically, Safeguard targets early- and growth-stage companies in advertising technology, digital media, financial technology, enterprise software, Internet of Things, devices, diagnostics, digital health and healthcare IT. For more information, please visit www.safeguard.com.
About Fairmount Partners
Fairmount Partners is one of the largest investment banking groups in the Mid-Atlantic region. The firm specializes in advising middle-market growth companies with mergers and acquisitions, capital raising and strategic advice. Fairmount offers deep expertise in the Technology and Software, Information Technology Services, Healthcare Services and Technology and Industrial and Consumer Products markets. Fairmount has completed more than 160 transactions throughout North and South America, Europe, Asia and Australia since its inception in June 2003. For more information, visit www.fairmountpartners.com.
Principals of Fairmount Partners acted as advisors to DriveFactor in this transaction.
Charles Robins
About CCC Information Services Inc.
CCC brings together what matters most – insight to make the best decisions, connections into the industry’s leading auto claims network and superior productivity through an innovative single platform. Founded in 1980, CCC is the nation’s leading provider of advanced software, workflow tools and enabling technologies to automotive collision repairers, parts suppliers and property/casualty insurance carriers. Its client base includes more than 350 insurance companies and more than 21,000 repair facilities. In addition, the CCC True™ Parts Network connects hundreds of parts suppliers with repairers. CCC also delivers the most comprehensive, best-in-class industry insights by leveraging data captured from the millions of transactions processed through its network and the forward-looking, trusted advisor perspective of its people. For more information, visit www.cccis.com.
Fairmount Partners 