The industry arguably saw a more traditional acquisition today with the announcement that Brookfield, Wisc.-based Fiserv Inc. has acquired workers' comp, commercial P&C and risk administration software solution provider InsureWorx (Oakland).
Tel Aviv-based World Group Holdings reported it would net approximately $35 million through the sale of InsureWorx, after acquiring the vendor for about $8 million three years ago. InsureWorx's 2005 revenues were $43 million. Through the acquisition, Fiserv gains a commanding share of the workers' compensation technology market segment, among other benefits.
"The addition of InsureWorx enhances our capabilities in the important workers' compensation segment," says Jeff Yabuki, president and CEO of Fiserv Inc. "The InsureWorx team brings a critical blend of insurance knowledge and technology expertise that will serve to expand Fiserv's client relationships and further accelerate our growth strategy."
The deal signaled the intentions one of the more traditional big players to continue to play such a role and it also followed the pattern of previous Fiserv deals, according to Celent analyst Matt Josefowicz. "If you look at the two companies that ChoicePoint recently bought -- ePolicy and SteelCard -- those are very much intellectual property plays; they're buying the applications and rolling them into the [ChoicePoint subsidiary] Insurity client base and organization," Josefowicz comments. By contrast, Fiserv's InsureWorx acquisition "fits the more traditional Fiserv pattern of acquiring companies with large, mature client bases."
Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio