Brookfield, Wis.-based Fiserv Inc. and Insurance Management Solutions Group Inc. announced the signing of a definitive agreement whereby Fiserv will acquire Insurance Management Solutions Group Inc. (IMSG).
Upon shareholder approval and completion of the merger, IMSG shareholders unaffiliated with Bankers Insurance Group, Inc. (BIG) will receive $3.30 per share in cash, and certain BIG-affiliated shareholders will receive $3.26 per share in cash. The total purchase price is approximately $40 million. Fiserv estimates that IMSG will have approximately $22 million of cash at closing. The merger is subject to customary conditions to closing, including receipt of IMSG shareholder approval, as well as the approval of the transaction by a majority of the IMSG shareholders other than certain BIG-affiliated shareholders. IMSG currently expects its 2003 revenues to be approximately $25 million.
“With the addition of IMSG’s client base to the existing Fiserv flood insurance business process outsourcing organization, we expect to continue to expand our portfolio of specialized information technology services,” said Leslie M. Muma, President and CEO of Fiserv, Inc. “We are able to help our clients remain competitive in a dynamic financial services industry by growing our portfolio of insurance products and services. With the client base, people and resources gained through IMSG, we expect to continue to enhance our ability to serve the flood insurance market.”
IMSG provides a complete range of policy and claims administration services as well as financial and statistical reporting, with a focus on serving the flood insurance market. Supported by nearly 200 employees, IMSG manages and processes nearly 800,000 policies and more than 20,000 claims annually. Founded in late 1996, the company is based in St. Petersburg, Florida.
“We expect the IMSG client base to bring an added volume to the flood business process outsourcing division of our Insurance Solutions Group,” said Norman J. Balthasar, Senior Executive Vice President and Chief Operating Officer of Fiserv, Inc. “As we continue to leverage our operations, we anticipate the IMSG organization to enhance our service capabilities. We look forward to the IMSG team joining Fiserv.”
“At IMSG, we are committed to developing and maintaining the best possible use of both current and emerging technology to benefit our clients, and as part of Fiserv we anticipate added resources to help us meet that objective,” said David M. Howard, President and CEO of IMSG. “With the support of the advanced technology and resources of Fiserv, we expect to focus on responsiveness, vision and commitment to service.”