Verisk to buy roofing contractor software platform for $2.4 billion

(Reuters) — Data analytics firm Verisk said on Wednesday it will buy AccuLynx, which makes software for roofing contractors, for $2.35 billion as it looks for a bigger foothold in a key segment of the residential insurance market.

The all-cash deal could allow Verisk to simplify interactions between insurers and contractors, which it says will speed up claims and lower expenses for policyholders.

The deal also highlights growing interest in home repair companies, as severe weather and rising repair costs pressure both insurers and homeowners. Roofing is one of the most expensive components of property insurance.

The acquisition, scheduled to close by the end of the third quarter, is expected to add to Verisk’s adjusted earnings per share by the end of 2026. Its shares rose 2% before the open.

Verisk also reported better-than-expected profit for the second quarter on Wednesday, driven by strong demand from property and casualty insurers for its underwriting risk assessment tools.

Adverse weather has prompted P&C insurers to spend more on analytics to better assess policy risks.

On an adjusted basis, Verisk earned $1.88 per share in the second quarter, beating analysts’ estimates of $1.77, according to data compiled by LSEG.

On reported basis, the company’s underwriting revenue increased 8.3% in the quarter, while claims revenue climbed 6.6%.