Completion of Standard Register/InSystems Deal Opens New Market Opportunities

With the official completion today of Standard Register's (Dayton, OH) $89 million acquisition of Toronto-based InSystems Technologies, Inc., both companies will be able to pursue the opportunities enabled by the cash deal—not the least of which will be the chance to build market share in previously untapped industry segments.

Because Standard Register's strongest customer bases have been in banking and healthcare, the merger should facilitate InSystems' efforts to build a stronger presence in those markets, according to Andrew Jackson, InSystems' chief marketing officer. Conversely, adds Jackson, the deal will support Standard Register's desire to build market share in the insurance industry.

"For InSystems, the acquisition provides us with additional resources to help accelerate product development, and expand into the financial services and healthcare markets," Jackson explains. "Standard Register, which has been a more traditional print output company, is transforming into more of a document solutions company. While their customers include 20 of the top 25 banks and 18 of the top 25 healthcare integrated delivery networks, they don't have a strong presence in insurance—which they will get with InSystems."

In addition to the new market opportunities created by the acquisition, the deal seems like the proverbial "win-win" scenario for several other reasons. For example, although InSystems becomes a subsidiary of Standard Register, it will retain its existing management structure (including Ross Orrett as president and Michael J. Egan as chairman of the board) and will not be integrated into the Standard Register structure. "We retain the brand and mission; there will be a lot of continuity," Jackson says. Additionally, Egan is expected to have a new, additional role at Standard Register that will involve strategies for partnerships/alliances and future acquisitions. "Standard Register is planning multiple acquisitions, and Mike will play a role in that," Jackson says.

Katherine Burger is Editorial Director of Bank Systems & Technology and Insurance & Technology, members of UBM TechWeb's InformationWeek Financial Services. She assumed leadership of Bank Systems & Technology in 2003 and of Insurance & Technology in 1991. In addition to ... View Full Bio