Sedgwick Claims Management Services Inc., a leading provider of technology-enabled claims and productivity management solutions, announced Monday that global investment firm KKR, together with Sedgwick’s management team, agreed to acquire majority ownership of Sedgwick for approximately $2.4 billion from its current group of investors.
The current investors include Hellman & Friedman LLC and Stone Point Capital LLC.
“We couldn’t ask for a better partner in the next stage of Sedgwick’s evolution,” said David A. North, president and CEO of Sedgwick, in a statement. “KKR has an exceptional record of investing in financial services companies and will be a valuable strategic resource for our organization,” he said, highlighting a shared commitment to continued innovation in the claims and productivity management industry.
Tagar Olson, member of KKR and head of its financial services investment practice, noted: “This is a critical time for employers as they adjust to an evolving health care delivery model, the shifting demographics of the workforce and a multitude of additional challenges. Sedgwick has an exceptional management team, a strong track record of innovation and the technology-driven solutions to address these challenges. We believe our partnership will enable them to maintain and enhance their leadership position in the industry.”
On an annual basis, Sedgwick handles more than 2.1 million claims and has fiduciary responsibility for claim payments totaling more than $11 billion.
The transaction is expected to close during the first quarter of 2014, subject to customary conditions and regulatory approvals