Xerox (NYSE: XRX) today announced a definitive agreement to acquire ISG Holdings, Inc. for $225 million, creating a comprehensive workers’ compensation suite of offerings for clients in the property and casualty insurance industry.
In addition to Xerox’s current workers’ compensation business offered through CompIQ, Xerox will add the following ISG subsidiaries and their offerings to its portfolio:
StrataCare®, based in Irvine, Calif., provides comprehensive web-based medical bill review software, workflow and outsourcing solutions.
Bunch CareSolutionsTM, based in Lakeland, Fla., provides medical management solutions with real-time integration between medical bill review and nurse case management.
The acquisition of ISG expands Xerox’s services to property and casualty insurance carriers, third-party administrators, managed care services providers, governments and self-administered employers who require comprehensive reviews of medical bills and implementation of care management plans stemming from workers’ compensation claims. This acquisition complements Xerox’s current support of the top 20 U.S. property, casualty and commercial health insurance companies, touching nearly two-thirds of the nation’s insured population.
“The workers’ compensation industry generates $60 billion in medical payments each year – that equates to approximately 75 million bills in need of financial validation,” said Bob Zapfel, president, Xerox Services. “This acquisition demonstrates our commitment to the property and casualty sector and makes us an industry leader in workers’ compensation bill review software and care management services.”
ISG’s secure and compliant SaaS (Software as a Service) cloud delivery platform, care management services and analytics blended with Xerox’s world-class transactional expertise will allow clients to benefit from a true end-to-end solution.
“Xerox provides a solid, secure foundation to continue to enhance our software and technology based services,” Paul Glover, ISG’s chairman and CEO. “The depth and breadth of Xerox’s services and resources provide ISG’s customers confidence in our ability to meet and exceed their needs into the future.”
Once the acquisition is complete, the brands will go to market as StrataCare, A Xerox Company and Bunch CareSolutions, A Xerox Company. The operations of StrataCare and Bunch CareSolutions and its 700 employees in Irvine, Calif., Lakeland, Fla., and Amarillo, TX, will continue to be led by Glover, who will report to Connie Harvey, chief operating officer of Xerox’s commercial healthcare and insurance business.
Since the invention of Xerography more than 75 years ago, the people of Xerox (NYSE: XRX) have helped businesses simplify the way work gets done. Today, we are the global leader in business process and document management, helping organizations of any size be more efficient so they can focus on their real business. Headquartered in Norwalk, Connecticut, we have more than 140,000 Xerox employees and do business in more than 180 countries, providing business services, printing equipment and software for commercial and government organizations. Learn more at www.xerox.com.