Xerox Gets Approval to Acquire ISG Health-Payments Businesses for $225 Million
Law360 reports that the U.S. Federal Trade Commission has granted approval for Xerox’s $225 million acquisition of ISG Holdings, a health-care technology firm.
Xerox had announced its plans to acquire ISG on May 6th in order to strengthen its workers-compensation business products and services offered to property- and casualty-insurance clients.
Under the deal, Xerox will acquire two of ISG’s businesses: StrataCare, which is based in Irvine, California, and which provides Web-based medical-bill review software, workflow, and outsourcing solutions, and Bunch CareSolutions, which is based in Florida, and which provides medical-management solutions with real-time integration between medical-bill review and nurse-case management.
According to Xerox, the acquisition of the two ISG businesses expands Xerox’s services to property- and casualty-insurance carriers, third-party administrators, managed-care services providers, governments, and self-administered employers who require comprehensive reviews of medical bills and implementation of care-management plans for workers’ compensation claims.
“The workers’ compensation industry generates $60 billion in medical payments each year — that equates to approximately 75 million bills in need of financial validation,” said Xerox Services President Bob Zapfel. “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.”
“Xerox provides a solid, secure foundation to continue to enhance our software and technology based services,”said ISG Chairman and CEO Paul Glover. “The depth and breadth of Xerox’s services and resources provide ISG’s customers confidence in our ability to meet and exceed their needs into the future.”
Once the acquisition is complete, the ISG businesses will be branded as “StrataCare, A Xerox Company” and “Bunch CareSolutions, A Xerox Company,” respectively.
Glover will continue to lead StrataCare’s and Bunch CareSolutions’ operations, as well as their 700 employees. Glover will report to Connie Harvey, chief operating officer of Xerox’s commercial health care and insurance business.