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Sedgwick buys disability benefits firm

MEMPHIS, Tenn.—Sedgwick Claims Management Services Inc. has acquired VPA Inc., a claims services firm specializing in absence and disability benefit management programs for large employers.

Terms of the deal were not disclosed. Calabasas, Calif.-based VPA has annual revenues of approximately $20 million, Sedgwick said in a statement.

Under the agreement, VPA will be integrated into Memphis, Tenn.-based Sedgwick and will do business under the Sedgwick name. Julie Santen, vp of operations at VPA, has been tapped to serve as vp and operations manager overseeing the new Calabasas-based Sedgwick office, Sedgwick said.

“The strategic fit between the two organizations will enrich our offerings to clients,” said David A. North, Sedgwick’s president and chief executive officer, in the statement. “VPA’s focus on disability and absence management programs for large employers will reinforce the fastest-growing component of our business, and their longstanding involvement with self-insured (state disability insurance) programs will significantly enhance Sedgwick CMS’s capabilities in that area of specialization.”

Purchasing VPA also will support Sedgwick’s goal of reaching a revenue base of $1 billion within the next two years, added William P. Foley, chairman and CEO of Fidelity National Financial Inc., in the statement.

Jacksonville, Fla.-based FNF—along with private equity firms Thomas H. Lee Partners and Evercore Partners—in January acquired Sedgwick in a $635 million deal.

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