Provides scale and infrastructure to expand outsourcing capabilities in North America
WHITELEY, UK and HARTFORD, CT., November 02, 2006 � The Innovation Group (LSE:TIG), a global provider of technology-enabled outsourcing and technology solutions to the P&C industry, today announced that the company has reached an agreement to acquire First Notice Systems, Inc. from Concentra Operating Corporation for (US)$51.55 million in cash, comprising consideration of $50 million and related payments of $1.55 million. The acquisition, which is subject, amongst other things, to the approval of The Innovation Group shareholders and certain other customary finance and closing conditions, is expected to close in the fourth quarter of 2006, providing a platform for the company to grow its insurance outsourcing business in the US.
Headquartered in Boston, Massachusetts, First Notice is a leading provider of claim-reporting outsourcing services and software to the property and casualty insurance market in the US. First Notice�s principal focus is on handling � on behalf of its clients � the first notice of loss (FNOL) made by an insurance company customer of a claim or a potential claim. First Notice currently processes approximately 2 million claims a year and makes 10 million outbound distributions on behalf of its client base, which comprises over 100 insurance clients, including carriers, third party administrators and self insured businesses.
�The acquisition of First Notice gives The Innovation Group critical mass in the US,� said Hassan Sadiq, CEO of The Innovation Group. �This strategic US presence, underpinned by a strong global performance, leaves the enlarged Group well placed for future growth.�
The Innovation Group provides outsourcing services and software solutions to insurers and other risk carriers through its international network of offices. The Group has assembled a portfolio of important assets comprising a set of software-led business processes for the handling of the breadth of the administrative processes of insurers and risk carriers � including back office functions such as claims management and sales, as well as software technology for both policy and claims administration that can be both utilized in connection with the Group�s outsourcing operations and implemented on a stand-alone basis.
�The collective capabilities of The Innovation Group and First Notice Systems � from both a business process outsourcing and technology standpoint � are unmatched in the global P&C market,� said Will Fulton, President of First Notice. �We are extremely excited about the caliber and depth of solutions we will be able to bring to our clients moving forward.�
About Innovation Group
Innovation Group (LSE:TIG) provides outsourcing services and software solutions to insurers and other risk carriers through its international network of offices. The Group has assembled a portfolio of important assets comprising a set of software-led business processes for the handling of the breadth of the administrative processes of insurers and risk carriers. These include back office functions such as claims management and sales, as well as software technology for both policy and claims administration that can be utilized in connection with the Group�s outsourcing operations and implemented on a stand-alone basis.
The Group has offices in the United Kingdom, Continental Europe, South Africa, Japan, Australia and North America, and delivers services for some of the largest insurance businesses in the world, including Aviva, Auto Club of Southern California, Ford Motor Company of South Africa, Toyota (South Africa), Halifax General Insurance, The Insurance Australia Group, Jaguar Drive Plan (South Africa) AXA Insurance, Sonpo 24 Insurance (Japan) and Zurich (UK).
Innovation Group solutions are deployed in 11 countries, used by over 25,000 people processing more than 20 million policies and handling millions of claims for clients annually. For more information, please visit www.innovation-group.com.
About First Notice Systems, Inc.
First Notice is a leading provider of claim reporting outsourcing services and software to the property and casualty insurance market in the U.S. First Notice�s principal focus is on handling � on behalf of its clients � the first notice of loss (FNOL) made by an insurance company customer of a claim or a potential claim. First Notice currently processes approximately 2 million claims a year and makes 10 million outbound distributions on behalf of its client base, which comprises over 100 insurance clients, including carriers, third party administrators and self insured businesses.
About Concentra
Concentra Operating Corporation, a wholly owned subsidiary of Concentra Inc., is dedicated to improving the quality of life by making healthcare accessible and affordable. Serving the occupational, auto and group healthcare markets, Concentra provides employers, insurers and payors with a series of integrated services that include employment-related injury and occupational healthcare, in-network and out-of-network medical claims review and repricing, access to preferred provider organizations, first notice of loss services, case management and other cost containment services. Concentra provides its services to approximately 200,000 employer locations and more than 1,000 insurance companies, group health plans, third-party administrators and other healthcare payors. The Company has 310 health centers located in 40 states. It also operates the Beech Street and FOCUS networks.
