Lubbock, Texas-based The Parker Group, a health care and benefits management holding company, announced it has closed on the acquisition of Gallagher Benefit Administrators Inc., a national third-party employee benefits administrator. The company was acquired from a subsidiary of Arthur J. Gallagher & Co.
Gallagher Benefit Administrators provides services to over 500,000 covered lives through offices in Illinois, Texas, Ohio, Mississippi, California, Michigan and Colorado.
“The timing of this acquisition allows us to take advantage of significant market opportunities as a leading provider of employee benefit administrative services,” said Michael Bryan, president and COO of the combined companies. “Employers will receive the efficiencies and strategic expertise needed to assist their employees and retirees manage the pressures of rising health care costs. For existing and new brokers, this acquisition opens the door to a wide spectrum of new and exciting opportunities across the country.”
Last month, The Parker Group acquired Bryan’s company, American Administrative Group Inc., of Fort Worth, Texas. AAG has a 20-year history in retiree benefits and Medicare administration as well as business process outsourcing services for the group insurance and union market sectors. AAG provides administrative services for benefit plans that cover over 80,000 lives.
“Our acquisition strategy is an effective way to accelerate growth, improve operations and integrate new services. The combined revenues clearly put us among the top ten employee benefit TPAs in the nation,” says Ted Parker, CEO, The Parker Group. “AAG and GBA are a great boost to our long-term strategy of geographic and product expansion. Employers and brokers alike will reap the benefits of administrative service excellence and an experienced, stable management team.”
The Parker Group owns ICON Benefit Administrators Inc. (ICON), a Lubbock, Texas-based third party administrator with over 70,000 members in 22 states, serving a combination of private employers, governmental entities, church associations and MEWA’s. ICON administers worker’s compensation, Section 125/Cafeteria plans, and consumer driven health plans.
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