Insurance claims management firm Crawford & Company and Platinum Equity have signed a deal under which Crawford will acquire Platinum’company Broadspire Services, a third-party administrator.
Broadspire Services, a privately-held corporation, will be acquired by Crawford for total consideration of $150 million. Crawford said the acquisition is anticipated to more than double its revenue from self-insured clients.
The transaction, which is subject to normal closing conditions, is expected to be completed during
the fourth quarter 2006.
The acquisition of Broadspire Services supports Crawford’s mission of becoming the leading third party administrator in all segments of the market for casualty claims program administration. Casualty claims administration encompasses workers’ compensation, and auto and general liability exposures for the insured and self-insured marketplace.
Based on 2005 revenue, Crawford said the combined Crawford and Broadspire Services organization will rank third in revenue from claims handled for this market segment.
Crawford & Company intends to retain the Broadspire Services name, rebranding Crawford Integrated Services, its risk and healthcare management business unit.
“Keeping the Broadspire Services name fits in with the Crawford & Company strategy of providing an independent, clearly recognizable identity for each business unit within the company,” said Bob Kulbick, president of Crawford Integrated Services.
Advisors to Platinum Equity on this transaction include StoneRidge Advisors, LLC, and Bingham McCutchen, LLP. SunTrust Robinson Humphrey and King & Spalding, LLP were the advisors for Crawford & Company.
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