Xerox has signed a definitive agreement to buy ISG Holdings, in a transaction valued at approximately $225m, as part of its plan to build a comprehensive workers’ compensation suite of offerings for property and casualty insurance industry clients.
Post- takeover, Xerox will add two ISG subsidiaries and their offerings to its portfolio, including California-based StrataCare that offers comprehensive web-based medical bill review software, workflow and outsourcing solutions.
Another firm joining Xerox business offering is Bunch CareSolutions in Lakeland, which delivers medical management solutions with real-time integration between medical bill review and nurse case management.
Apart from these, Xerox’s current workers’ compensation business is being offered through CompIQ.
The acquirer noted that the takeover of ISG will enhance its services to property and casualty insurance carriers, third-party administrators, managed care services providers, governments and self-administered employers.
Xerox Services president Bob Zapfel said: "The workers’ compensation industry generates $60 billion in medical payments each year – that equates to approximately 75 million bills in need of financial validation.
"This acquisition demonstrates our commitment to the property and casualty sector and makes us an industry leader in workers’ compensation bill review software and care management services."
Clients will benefit from a true end-to-end solution, combining ISG’s secure and compliant software as a service (SaaS) cloud delivery platform, care management services and analytics with Xerox’s transactional expertise.
Upon completion of the acquisition, the brands will operate as StrataCare, a Xerox Company and Bunch CareSolutions, a Xerox Company.
The operations of StrataCare and Bunch CareSolutions and its 700 staff will continue to be managed by Glover, who will report to Connie Harvey, chief operating officer of Xerox commercial healthcare and insurance business.