The Innovation Group, a Whitely, England-based firm providing insurers with technology solutions and outsourcing, announced today it is acquiring First Notice Systems Inc. for $51.6 million.
Innovation said it is buying the Boston-based provider of claim reporting outsourcing services and software from Concentra Operating Corp., Hartford, Conn., for $50 million cash and related payments of $1.55 million.
The acquisition, subject to approval by Innovation shareholders, is expected to close in the fourth quarter of this year. Innovation said the transaction should give it a platform to grow its insurance outsourcing business in the United States.
First Notice's principal focus is on handling–on behalf of its clients–the first notice of loss made by an insurance company customer of a claim or a potential claim, Innovation said.
Currently, First Notice processes approximately 2 million claims a year and makes 10 million outbound distributions on behalf of its client base, which comprises over 100 insurance clients, including carriers, third-party administrators and self-insured businesses, the companies involved in the acquisition said.
Hassan Sadiq, Innovation's chief executive officer, said: "The acquisition of First Notice gives The Innovation Group critical mass in the U.S. This strategic U.S. presence, underpinned by a strong global performance, leaves the enlarged group well placed for future growth."
Innovation provides outsourcing services and software solutions to insurers and other risk carriers through an international network of offices.
The company said it has assembled a portfolio of assets comprising a set of software-led business processes for the handling of the breadth of the administrative processes of insurers and risk carriers–including back office functions such as claims management and sales, as well as software technology for both policy and claims administration that can be utilized in connection with the group's outsourcing operations or implemented on a stand-alone basis.
Will Fulton, First Notice's president, said: "The collective capabilities of The Innovation Group and First Notice Systems–from both a business process outsourcing and technology standpoint–are unmatched in the global p-c market. We are extremely excited about the caliber and depth of solutions we will be able to bring to our clients moving forward."
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