Dallas — Affiliated Computer Services Inc. (ACS), Dallas, announced an agreement to acquire CompIQ Corp., an Irvine, Calif.-based provider of workers' compensation claims review, re-pricing and software solutions. The acquisition for $22 million, plus contingent payments based on future financial performance, is expected to close in May 2008, subject to customary conditions. The transaction will be funded with a combination of cash on-hand and borrowings under ACS' existing credit facility.
CompIQ is a national provider of medical bill review and cost-containment services for the workers' compensation, group health and liability insurance industries.
"This acquisition demonstrates our commitment to helping our clients manage their insurance and health care costs by providing technology-enabled medical bill review and recovery services," says Tom Blodgett, group president of ACS Business Process Solutions. "The addition of CompIQ gives us capabilities we do not possess today, and helps differentiate ACS as a leading provider of responsive, reliable and flexible solutions to the health care and insurance payer markets."
CompIQ's trailing 12-month revenue for the period ending March 31, 2008, was approximately $17 million. The business will be known as ACS CompIQ and will continue to be managed by CompIQ's existing executive team, adding approximately 130 employees to ACS operations.
"The combination of ACS and CompIQ increases our ability to penetrate the bill review market," says Art Zeiner, Jr., founder and CEO of CompIQ. "ACS will be able to leverage our industry expertise to provide end-to-end audit, bill review and recovery services, and we will be able to cross sell the full suite of ACS services to our existing clients. We look forward to helping ACS meet its long-term growth objectives, not only by providing state-of-the-art administrative services, but also by enabling our clients to manage their overall health care, insurance and operating costs."
Source: Affiliated Computer Services Inc.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access