Brookfield, Wis. — Fiserv Inc. is selling substantially all of its health businesses to Minneapolis-based UnitedHealthcare, a business of United Health Group, one of America’s largest health care companies, for $775 million in cash, the company reports.The Brookfield, Wis., provider of information technology services to the financial and insurance industries worldwide, said that the transaction is anticipated to close by the end of 2007 or in the first quarter of 2008, subject to required regulatory approvals and customary closing conditions.
The transaction includes Fiserv Health Plan Administration, the nation's largest third-party administrator (TPA) of self-funded health plans; Fiserv Health Plan Management, an outsourcing service for mid-sized health plans and healthcare payer organizations; Innoviant, a prescription benefits administrator; Innoviant Pharmacy, a prescription mail-order service; Avidyn Health, a care management company; and four other components of Fiserv Health's ancillary businesses.
The company will retain its workers’ compensation services organization, which includes the recently announced WorkingRx acquisition. The company will also retain its CareGain Inc. technology business, which is used to intermediate health banking solutions. Both of these businesses will remain in the insurance segment.
“Now, Fiserv will be completely focused on expanding its technology leadership position across the financial services landscape,” said Fiserv’s president and CEO Jeffery Yabuki.
Yabuki said that Fiserv will continue to deliver innovative health care banking and payments products and services to its clients. Over the last several years the company has established a leading position in this growing area in part due to the knowledge and expertise gained by owning these health care businesses, claims the company.
Source: Fiserv 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