August 22, 2006 by Canadian Underwriter
Crawford & Company, an independent provider of claims management solutions, has been busy in August, acquiring Broadspire Services, a third-party administrator of casualty claims and medical management services, from Platinum Equity, as well as SLS, a liability adjusting and claims handling company.
Crawford acquired Broadspire Services, a privately-held corporation, for US$150 million. “The acquisition is anticipated to more than double Crawford’s revenue from self-insured clients,” the company announced in a press release.
The transaction, subject to normal closing conditions, is expected to be completed during 2006 Q4. Based on 2005 revenue, the combined Crawford and Broadspire Services organization will rank third in revenue from claims handled for this market segment.
“We are excited about this acquisition and believe that it not only further strengthens our position in the marketplace, it also illustrates that we are fully committed to serving our clients’ and brokers’ needs,” Crawford & Company president and CEO Tom Crawford said. “Broadspire Services’ reputation, experience, and resources, coupled with our revolutionary service model and wide array of specialized support services, provide clients with a distinct advantage clearly focused on driving down costs.”
Jim Levitas, senior vice president for mergers and acquisitions at Platinum Equity, said Crawford & Company is an ideal strategic acquirer to continue the growth and development of Broadspire Services. Platinum established Broadspire as a stand-alone company after acquiring the business in 2003 from Kemper Insurance Companies.
Crawford said its acquisition of Broadspire Services supports its mission to become “the leader and third-party administrator of choice in all segments of the market for casualty claims program administration.” This encompasses workers’ compensation, and auto and general liability exposures for the insured and self-insured marketplace.
Elsewhere, Crawford & Company has announced its acquisition of SLS has been successfully completed.
With more than 50 staff in eight branches strategically located throughout the United Kingdom, SLS has a strong presence in the Lloyd’s and London market and a client list that includes a number of blue chip corporations.
In the U.K., Crawford & Company UK is already a significant player in the complex liability claims arena, with professional and client support staff located across 16 specialist liability branches throughout the U.K. Within its U.K. liability division, Crawford focuses on employer and public liability, professional indemnity work, product liability and recall and motor and disease claims.