Insurance servicers merger halted (Dealscape

The Federal Trade Commission won its first litigated preliminary injunction case since 2002 by stopping a $1.4 billion merger of two of the nation's three makers of collision damage estimation software.

The decision by U.S. District Court Judge Rosemary Collyer on Monday was also important because it clarified the standard a court should consider in blocking a deal. Collyer ruled that the FTC had proved there was a good chance a merger of Mitchell International Inc. and rival CCC Information Services Inc. would harm consumers, as remaining competitors could signal their pricing plans, allowing them to avoid price cuts that would undermine each other's margins -- an important factor, because testimony indicated the industries' profit margins already hover around 80%.

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NOT A SUBSCRIBER? Insurance servicers merger halted Posted on March 10, 2009 2:14 PM The Federal Trade Commission won its first litigated preliminary injunction case since 2002 by stopping a $1.4 billion merger of two of the nation's three makers of collision damage estimation software. The decision by U.S. District Court Judge Rosemary Collyer on Monday was also important because it clarified the standard a court should consider in blocking a deal. Collyer ruled that the FTC had proved there was a good chance a merger of Mitchell International Inc. and rival CCC Information Services Inc. would harm consumers, as remaining competitors could signal their pricing plans, allowing them to avoid price cuts that would undermine each other's margins -- an important factor, because testimony indicated the industries' profit margins already hover around 80%. This is a free preview of the content available in The Deal Pipeline. Subscribers enjoy access to the full story, as well as second-to-none research tools. To request a demo, or, if you are an existing user to The Deal Pipeline, log in to your account, please scroll down and click the button. Dig deeper, with Pipeline. 853 in-depth reports of M&A deals in the Technology sector 417 company pages related to Software 26 articles related to CCC Information Services Inc. 20 articles related to Mitchell International Inc. 10 years of news and analysis archives from the voice of The Deal Economy Most searched keywords Skadden Arps Amusement parks Deb Shops Windstream Corp. Diedrich Coffee Hanna Andersson Tween Brands Entertainment Lazard Lyondell Chemical		EXISTING USERS Username Password Forget your password? Missing a product?

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