Verisk to Acquire AccuLynx for $2.35B, Enhancing Residential Insurance Analytics

Verisk, a data analytics firm specializing in insurance industry solutions, announced its acquisition of AccuLynx, a software provider serving roofing contractors, for $2.35 billion in an all-cash transaction. This strategic move aims to enhance Verisk's presence in the residential insurance sector by streamlining insurer-contractor interactions, thereby accelerating claims processing and reducing costs for policyholders.

The acquisition reflects the growing attention on home repair services within insurance markets, particularly as escalating severe weather events and rising repair costs intensify pressure on both insurers and homeowners. Roofing represents one of the costliest elements in property insurance claims, underscoring the significance of this integration. Scheduled to close by the end of the third quarter, the deal is projected to contribute positively to Verisk's adjusted earnings per share by the end of 2026. Financial advisory roles were filled by Goldman Sachs and PJT Partners for Verisk, with William Blair advising AccuLynx. Concurrently, Verisk reported better-than-expected second-quarter profits driven by increased demand from property and casualty insurers for its underwriting risk assessment tools, reflecting heightened insurer investment in analytics amid worsening weather-related risks. On an adjusted basis, Verisk earned $1.88 per share, surpassing analyst estimates of $1.77. Underwriting and claims revenue grew by 8.3% and 6.6% respectively, signaling robust business growth. The company updated its outlook for 2025 with an adjusted earnings per share forecast now set between $6.80 and $7.00, slightly narrowing its previous range. However, Verisk raised its full-year revenue projections to between $3.09 billion and $3.13 billion, indicating confidence in sustained revenue expansion. This acquisition and updated outlook illustrate Verisk's strategic response to evolving insurance market dynamics, particularly the intersection of analytics, property risk management, and home repair service integration in response to insurer and homeowner needs.