Sedgwick CMS Holdings Inc., Memphis, Tenn., has acquired Comp Management Inc. for a cash price totaling $191.5 million, the company said.
The acquired group of companies, based in Jacksonville, Fla., provides third-party claims administration and a variety of claims, risk and benefits consulting services to clients nationwide, and posted $145 million in revenue last year.
Sedgwick Claims Management Services Inc., a subsidiary of the acquirer, will merge with CMI's parent company, Security Capital Corporation.
The announcement came from both Sedgwick and Fidelity National Inc., its principal equity holder.
Sedgwick CMS President David North said some of the acquired capabilities will integrate into current service offerings. “Others will take us into new businesses such as services for managed care organizations and medical malpractice claims administration, or materially increase our presence in important markets such as association programs and regional employers.”
The transaction is expected to close late in the third quarter, or early in the fourth quarter, the company said.
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