2nd Nov 2006 13:00
The Innovation Group (LSE:TIG), a global provider oftechnology-enabled outsourcing and technology solutions to the P&Cindustry, today announced that the company has reached an agreement toacquire First Notice Systems, Inc. from Concentra OperatingCorporation for (US)$51.55 million in cash, comprising considerationof $50 million and related payments of $1.55 million. The acquisition,which is subject, amongst other things, to the approval of TheInnovation Group shareholders and certain other customary finance andclosing conditions, is expected to close in the fourth quarter of2006, providing a platform for the company to grow its insuranceoutsourcing business in the US. £ Headquartered in Boston, Massachusetts, First Notice is a leadingprovider of claim-reporting outsourcing services and software to theproperty and casualty insurance market in the US. First Notice'sprincipal focus is on handling - on behalf of its clients - the firstnotice of loss (FNOL) made by an insurance company customer of a claimor a potential claim. First Notice currently processes approximately 2million claims a year and makes 10 million outbound distributions onbehalf of its client base, which comprises over 100 insurance clients,including carriers, third party administrators and self insuredbusinesses. £ "The acquisition of First Notice gives The Innovation Groupcritical mass in the US," said Hassan Sadiq, CEO of The InnovationGroup. "This strategic US presence, underpinned by a strong globalperformance, leaves the enlarged Group well placed for future growth." £ The Innovation Group provides outsourcing services and softwaresolutions to insurers and other risk carriers through itsinternational network of offices. The Group has assembled a portfolioof important assets comprising a set of software-led businessprocesses for the handling of the breadth of the administrativeprocesses of insurers and risk carriers - including back officefunctions such as claims management and sales, as well as softwaretechnology for both policy and claims administration that can be bothutilized in connection with the Group's outsourcing operations andimplemented on a stand-alone basis. £ "The collective capabilities of The Innovation Group and FirstNotice Systems - from both a business process outsourcing andtechnology standpoint - are unmatched in the global P&C market," saidWill Fulton, President of First Notice. "We are extremely excitedabout the caliber and depth of solutions we will be able to bring toour clients moving forward." £ About Innovation Group £ Innovation Group (LSE:TIG) provides outsourcing services andsoftware solutions to insurers and other risk carriers through itsinternational network of offices. The Group has assembled a portfolioof important assets comprising a set of software-led businessprocesses for the handling of the breadth of the administrativeprocesses of insurers and risk carriers. These include back officefunctions such as claims management and sales, as well as softwaretechnology for both policy and claims administration that can beutilized in connection with the Group's outsourcing operations andimplemented on a stand-alone basis. £ The Group has offices in the United Kingdom, Continental Europe,South Africa, Japan, Australia and North America, and deliversservices for some of the largest insurance businesses in the world,including Aviva, Auto Club of Southern California, Ford Motor Companyof South Africa, Toyota (South Africa), Halifax General Insurance, TheInsurance Australia Group, Jaguar Drive Plan (South Africa) AXAInsurance, Sonpo 24 Insurance (Japan) and Zurich (UK). £ Innovation Group solutions are deployed in 11 countries, used byover 25,000 people processing more than 20 million policies andhandling millions of claims for clients annually. For moreinformation, please visit www.innovation-group.com. £ About First Notice Systems, Inc. £ First Notice is a leading provider of claim reporting outsourcingservices and software to the property and casualty insurance market inthe U.S. First Notice's principal focus is on handling - on behalf ofits clients - the first notice of loss (FNOL) made by an insurancecompany customer of a claim or a potential claim. First Noticecurrently processes approximately 2 million claims a year and makes 10million outbound distributions on behalf of its client base, whichcomprises over 100 insurance clients, including carriers, third partyadministrators and self insured businesses. £ About Concentra £ Concentra Operating Corporation, a wholly owned subsidiary ofConcentra Inc., is dedicated to improving the quality of life bymaking healthcare accessible and affordable. Serving the occupational,auto and group healthcare markets, Concentra provides employers,insurers and payors with a series of integrated services that includeemployment-related injury and occupational healthcare, in-network andout-of-network medical claims review and repricing, access topreferred provider organizations, first notice of loss services, casemanagement and other cost containment services. Concentra provides itsservices to approximately 200,000 employer locations and more than1,000 insurance companies, group health plans, third-partyadministrators and other healthcare payors. The Company has 310 healthcenters located in 40 states. It also operates the Beech Street andFOCUS networks. Copyright Business Wire 2006Related Shares:
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