Antitrust Lawyer Blog Commentary on Current Developments

FTC MOVES TO BLOCK MERGER BETWEEN CCC INFORMATION SYSTEMS AND MITCHELL INTERNATIONAL

On November 25, 2008, the FTC moved to block a merger between CCC Information Systems Inc (“CCC”), a subsidiary of CCC Holdings Inc., and Mitchell International Inc (“Mitchell”), owned by Aurora Equity Fund III LP.
Both companies provide services in estimatics, electronic systems used to estimate the cost of collision repairs, and total loss valuation (“TLV”) systems, which are software systems that are used to value passenger vehicles that have been totaled. The estimatics and TLV markets are already highly concentrated, with California-based Audatex, the only other competitor in the relevant markets. The proposed transaction would eliminate head-to-head competition between CCC and Mitchell and reduce the number of competitors in the relevant markets from three to two (CCC/Mitchell and Audatex).

According to the FTC, the combined company would command “a market share of far more than half of the sales of estimatics, and a market share of far more than half of the sales in the market for TLV systems.”

Robert Doyle
(202) 589-1834
rdoyle@dbmlawgroup.com