CCC Says Going Public Aids Its Digital Goal
Feb. 4, 2021—CCC yesterday announced it was going public as part of its parent company's $7 billion merger with special purpose acquisition company Dragoneer Growth Opportunities Corp.
Per a press release, the company is expecting the transaction to yield roughly $968 million, and the combined companies operating under a new name, CCC Intelligent Solutions Holdings Inc., will be listed on the New York Stock Exchange come the second quarter of this year.
According to Marc Fredman, SVP of strategy at CCC, all of this is being done to further what the company can do.
"For us, we wanted to have a base of permanent capital to drive innovation for customers," he said in an interview with FenderBender.
Over the past five years, Fredman said CCC has pushed for computer-based exchanges of information.
"We've really seen a big acceleration and in our business based on the desire for the whole industry to go digital," he said, noting that COVID pushed changes in what CCC offered to the collision repair industry, including digital engagement with customers through scheduling and photos of repairs.
Investing in artificial intelligence, Fredman said, has "been a big focus and will continue to be a big focus" for CCC, including how it can be used in shops.
Shop owners have expressed concerns to FenderBender that the platform—used by 25,000 collision repair shops, per Fredman—could get too big. State Farm late last year told its DRP shops they would be required to use CCC by April 1.
Asked about those concerns, Fredman said the company was aiming high, looking to digitize the industry. He underscored that 70 percent of the company's revenue comes from customers of at least a decade and said CCC would continue with its focus on customers and technological leadership. He summed what CCC offers, "Great innovations and great service," while noting it spends $100 million annually on research and development.
With current leadership staying in place, Fredman said shops who use CCC should expect no immediate changes to the platform.
"We're very focused on building long-term, that's not going to change," he said.