Standard Register Agrees To Acquire InSystems Technologies

There will be "no job losses at this point," according to Andrew Jackson, chief marketing officer and general manager for InSystems eXterity Division. Asked about the possibility of layoffs down the road, he commented: "I would never say never."

Peter Dorsman, chief operating officer of Standard Register, also said there would be no layoffs or reductions.

"Standard Register is extending its reach into spaces we have not been historically involved in," Mr. Dorsman explained. In addition, he noted, "we think that the platform [InSystems has] is leverageable in the industries in which we already play."

InSystems is "being bought to allow Standard Register to enter a new set of markets," said Chuck Johnston, program director, insurance information strategies for the Meta Group, a research organization based in Stamford, Conn.

According to Mr. Johnston, "there is little overlap in the sales force and product sets" of the two companies.

"InSystems is a recognized technology leader with the advanced solutions, technological capabilities and talent that will significantly bolster our information solutions offerings," said Dennis L. Rediker, president and CEO of Standard Register. "InSystems extended relationship management and document automation solutions complement our existing e-business, document management and fulfillment services offerings."

Mr. Rediker added that he is "also excited by the long-term value of this acquisition. In addition to InSystems strong growth, there is significant upside potential by leveraging technology, talent, customer relationships and solutions across the businesses over time. With InSystems dominant position in insurance and Standard Registers strength in banking, healthcare and other markets, there are significant opportunities to do more together."

While he conceded that a joint marketing agreement might bring many of the same benefits to Standard Register, Mr. Dorsman noted that "there are lots of benefits to the acquisition route," pointing to InSystems personnel and its established position in the insurance market.

Mr. Jackson said InSystems brings expertise in paperless business processes to the table.

Mr. Dorsman stated that his company views the acquisition as "a really unique opportunity to help customers migrate from paper to digital infrastructure. We believe that paper and digital will co-exist."

According to Mr. Jackson, Standard Register established acquisition criteria in fall 2001 and approached InSystems toward the end of that year. He said the deal would benefit InSystems in that it would "provide us with additional financial resources." He added that it would also allow InSystems to expand its business into financial services and health care, which he said is part of the companys "strategic vision."

"Through Standard Register, we will gain resources and insights to accelerate the development of additional InSystems solutions and extend our market reach," commented Michael J. Egan, chairman and chief executive officer of InSystems.

Mr. Jackson noted that executives in both companies will continue in their present roles.

"The plan is that InSystems will be owned, but nothing will be changed," Mr. Dorsman stated. He added, however, that Mr. Egan will be given a new role "to assist us with technology businesses in identifying where the synergies are and how to achieve growth." He will also "identify possible additional acquisitions," said Mr. Dorsman.

Both companies said no new products are anticipated as a result of the acquisition.

InSystems is a provider of document automation solutions and insurance portal software for managing extended relationships.

InSystems solutions include "InSystems Calligo," an integrated document automation software for organizations that need to create, manage and distribute highly personalized, error-free documents, and automate processes including compliance filings, document fulfillment and customer service, the company said.

Founded in 1989, InSystems reports annual revenues of approximately $24 million (U.S.) and employs about 230 people, primarily in technology roles.

Standard Registers (NYSE:SR) offerings include secure documents and label solutions, fulfillment and consulting services, and e-business solutions. As a strategic partner in migrating companies from paper-based to digital processes, Standard Register helps businesses reduce costs and increase revenue.

Founded in 1912, the Fortune 1000 company today employs about 6,000 people throughout the United States and serves companies in more than 40 countries through a network of international associate companies, the announcement noted. Standard Registers annual revenues exceed $1 billion.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, July 8, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.