Xerox Corp. has completed a deal to acquire workers compensation services provider ISG Services Inc. for $225 million, adding to the corporation's presence in what it sees as a “growing” workers comp market.
Norwalk, Connecticut-based Xerox announced the acquisition in early May and closed the deal on May 30, according to a company spokesman Thursday.
ISG includes StrataCare L.L.C., a medical bill review firm based in Irvine, California, and Bunch CareSolutions, a medical cost control firm based in Lakeland, Florida. The firms have retained their names after the deal's closing, and continue to be lead by ISG Chairman and CEO Paul Glover.
Xerox also owns Santa Ana, California-based CompIQ, a medical bill review company.
“The workers' compensation industry generates $60 billion in medical payments each year — that equates to approximately 75 million bills in need of financial validation,” Bob Zapfel, president of Xerox's Xerox Services division, which does business process outsourcing, information technology outsourcing and document management, said in a statement last month. “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's latest acquisition reflects the fact that workers comp is a “growing market,” said Connie Harvey, chief operating officer for Xerox Commercial Healthcare and Insurance Business, in a June 2 statement.
“As the U.S. economy creates more jobs, workers' compensation claims are expected to follow,” the statement said. “With the addition of ISG's software and services, Xerox will be able to help more clients simplify their business, while also solidifying our presence as a top-tier service provider in the insurance sector.”