California-based software giant Oracle is further expanding its stake in the insurance industry by agreeing to acquire the insurance software and document management business of Skywire Software.
Skywire Software’s insurance software helps insurers manage the life cycle of an insurance policy, including insurance policy creation, rating, insurance agent/broker management and information exchange solutions.
It’s the second insurance software firm targeted by Oracle this year. In May, Oracle agreed to acquire AdminServer, a Chester, Pa.-based provider of insurance policy administration software.
“Insurance is a strategic industry for Oracle with growth focused on integrated packaged applications,” said Oracle President Charles Phillips.
With Skywire Software and the pending acquisition of AdminServer, Oracle is expected to accelerate the formation of a complete software suite for the insurance enterprise. The pieces could include include Oracle’s database and middleware for technical infrastructure, Oracle applications to support general business, insurance-specific functionality in Oracle Billing, Siebel Claims, Siebel CRM and Insure, plus Skywire Software and AdminServer.
Skywire Software employees and management are expected to join the Oracle Insurance Global Business Unit together with the pending acquisition of AdminServer.
Skywire, which is based in Frisco, Texas, reports having 1,450 insurance customers, which will add to Oracle’s existing base of over 1,000 insurers.
The transaction is expected to close in the second half of 2008. Until the deal closes, each company will continue to operate independently. Financial details of the transaction were not disclosed.
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