Xerox Corp has declared that it is purchasing ISG Holdings for US$225 million in an attempt to make stronger its payment services unit. The purchase, analysts stated, will strengthen its services for clients in the insurance sector. Xerox stated the deal will be closed by the end of this financial quarter.
The Norwalk, Connecticut-based software service provider stated the acquired company will continue to work independently but under the Xerox brand. It appears that Xerox plans to integrate ISG s SaaS cloud delivery platform and care management service into its portfolio.
ISG, which has approximately 700 employees at its two centers in the United States, makes software that evaluates medical bills. It has two subsidiaries, StrataCare and Bunch CareSolutions. The operations of both the units will carry on to be managed by Paul Glover, who will report to Connie Harvey, chief operating officer of Xerox s commercial healthcare and insurance business.
Bob Zapfel, president of Xerox Services said, The workers compensation industry generates $60 billion in medical payments each year that equates to approximately 75 million bills in need of financial validation .
Xerox Services provides functions that comprise transaction processing, toll collection and call center support among a host of other operations. At present 55% of Xerox s revenue is produced by its services business, and that is likely to rise to 66% by 2017. The business comprises of a broad portfolio of enterprises in BPO, information technology outsourcing (ITO) and document outsourcing (DO).