Activist investor Elliott Investment Management and private equity firm GTCR and are in advanced discussions to acquire CCC Intelligent Solutions, a provider of software for the automotive insurance industry, according to a report by Bloomberg citing unnamed people familiar with the matter.

An agreement could be announced as soon as next week, although negotiations remain ongoing and the parties could still fail to reach a deal. The timing and terms remain uncertain, and another bidder could emerge, the sources said.

Chicago-based CCC has been reviewing strategic options with the help of a financial adviser after Elliott accumulated a substantial stake in the business. Bloomberg previously reported that vehicle auction and salvage specialist Copart had also held discussions about a potential acquisition, while several private equity firms had expressed interest.

CCC shares rose around 7% on Friday to close at $7.02, valuing the company at approximately $4.1bn.

Representatives for GTCR and CCC reportedly did not immediately respond to requests for comment, while Elliott reportedly declined to comment.

A potential transaction would come as investors reassess their exposure to software businesses amid concerns that artificial intelligence could disrupt established technology providers. It would also highlight Elliott's approach of combining activist investment strategies with private equity to help drive take-private transactions.

CCC previously explored a possible sale in 2023, when the company had a market valuation of approximately $8bn.