Sedgwick completes York Risk Services acquisitionPosted On: Sep. 4, 2019 9:53 AM CST
Sedgwick Claims Management Services Inc. has completed its acquisition of fellow top 10 third-party administrator York Risk Services Group Inc.
With the close of the acquisition, announced in July, the combined company now comprises nearly 27,000 employees across 65 countries, Memphis, Tennessee-based Sedgwick said in a statement on Wednesday.
Sedgwick is the largest TPA with $2.7 billion in gross revenues in 2018 while York is the fifth largest with $800 million in revenues last year, according to the latest Business Insurance rankings. The combination of two of the top five third-party administrators portends a trend of continued consolidation in the sector, with competing TPAs needing to examine their own operations and consider future acquisitions, according to experts.
As part of the transaction, entities controlled by Toronto-based Onex Corp., an investment manager founded in 1984 that owned York, are rolling their equity into the combined business and join Sedgwick’s shareholder group as a minority investor, according to the statement.