Sedgwick acquires CompManagement

Sedgwick CMS Holdings, Inc. recently signed a definitive agreement to acquire CompManagement, Inc. and its affiliated companies.
The acquisition is facilitate through a merger of a subsidiary of Sedgwick CMS Holdings and CompManagement’s parent company, Security Capital Corporation (AMEX: SCC), for a cash purchase price of approximately US$191.5 million.
CompManagement and its affiliates provide third-party claims administration (TPA) and a variety of related claims, risk and benefits consulting services to clients nationwide. Combined 2005 revenue was US$145 million.
“This acquisition brings a robust and diverse array of specialized capabilities to Sedgwick CMS,” said Sedgwick CMS President and CEO David A. North. “Some we will integrate into our service offerings for current clients. Others will take us into new businesses such as services for managed care organizations (MCO services) and medical malpractice claims administration, or materially increase our presence in important markets such as association programs and regional employers.”
The final purchase price is subject to certain adjustments.
Sedgwick CMS Holdings is the parent company of Sedgwick Claims Management Services, Inc. a provider of claims and productivity management solutions.