A planned merger of San Diego’s Mitchell International and its larger rival in the auto software industry, CCC Information Services of Chicago, was hit with a setback when the Federal Trade Commission filed suit against the transaction, according to a complaint filed Nov. 25.
The FTC alleged in its complaint the merger would harm insurers, repair shops and car owners by reducing from three to two the number of competitors in the space.
Both companies provide software that helps insurance companies assess and manage damage claims arising from car accidents.
Mitchell, founded here in 1946 and with about 1,000 employees, and CCC announced the merger in April. It would create a company with annual sales of about $460 million and some 2,000 employees, the companies said in April.
In a joint press statement Nov. 25, the two companies reaffirmed their intentions to join forces, and to contest the FTC’s action.
“The driving force behind the proposed merger is the many benefits and innovations it can deliver to our customers,” said Alex Sun, Mitchell’s chief executive. “Our industry is and will remain intensely competitive. This is something that continues to be one of its defining characteristics.”
, Mike Allen