Fair, Isaac Selling Network Connectivity Business
By Michael Ha
NU Online News Service, Dec. 6, 4:09 p.m. EST?Fair, Isaac and Company Inc., an analytics and decision technology provider, announced it has agreed to sell its network connectivity business unit to software provider Bridium Inc. of Atlanta.
The the San Rafael, Calif.-based company said the decision to divest the unit-which provides solutions for workers compensation compliance reporting-was made during a strategic review of business operations.
No terms were announced for the unit, which earned about $4 million in revenue during the fiscal year that ended in October, the company said.
Fair, Isaac said the survey was conducted following its merger with HNC Software, which was completed last August.
"We had a longstanding relationship with HNC software and then they were acquired by Fair, Isaac. So we extended our relationship and have agreed to acquire their network connectivity business unit," Bridium Chief Executive Officer Steve Isaac said.
"Between our two companies, this unit fits better with the claims management technology service at Bridium. And with this move, we acquired access to over 400 insurance companies, third-party administrators and managed-care organizations," Mr. Isaac said.
After careful review, Fair, Isaac decided that the workers compensation compliance reporting business, which generated about $4 million in revenue in the 12 months ending Oct. 30, would not be a significant factor in the long-term growth of the company's healthcare and insurance solutions market unit, Fair, Isaac Chief Executive Officer Tom Grudnowski said.
"Fair, Isaac remains the leading provider of medical bill review and predictive solutions for workers compensation, and we will continue to pursue expansion opportunities for our related medical management, cost containment and preferred provider organization businesses," Mr. Grudnowski said.
"We have an ongoing relationship with Bridium-we have a partnership with them. We don't see this as having any material impact. This would have been factored into the guidance figures that we released on Oct. 30," said Fair, Isaac Director of Investor Relations Deborah McGowan.
The network connectivity business made up a small part of the company's overall revenue, which is expected to be between $625 million and $635 million in the current fiscal year, Ms. McGowan added.
Bridium is an insurance industry software provider and a subsidiary of Atlanta-based financial holding company Cyberstarts Inc.
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