Standard Register Agrees To Acquire InSystems Technologies
In a sweeping move to become a player in the insurance technology space, Standard Register announced that it will acquire Toronto, Canada-based InSystems Technologies Inc., a provider of e-business solutions for financial services organizations.
Dayton, Ohio-based Standard Register, which provides information solutions for financial services, healthcare, and manufacturing, says it expects the acquisition to enhance its long-term growth and shareholder value, and to position the company as “a leading information solutions provider that helps companies drive efficiency and achieve customer loyalty.”
The transaction is expected to close by the end of July at a purchase price of approximately $89 million (U.S.) in cash, says InSystems. InSystems will operate as a wholly owned subsidiary of Standard Register, retaining its brand identity, leadership team, and workforce.
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“[InSystems is] being bought to allow Standard Register to enter a new set of markets,” says Chuck Johnston, program director, insurance information strategies, for the Meta Group, a research organization based in Stamford, Conn.
According to Johnston, “there is little overlap in the sales force and product sets” of the two companies.
“InSystems is a recognized technology leader with the advanced solutions, technological capabilities, and talent that will significantly bolster our information solutions offerings,” says Dennis L. Rediker, president and CEO of Standard Register. “InSystems extended relationship management and document automation solutions complement our existing e-business, document management, and fulfillment services offerings.
“We also are excited by the long-term value of this acquisition,” he continues. “In addition to InSystems strong growth, there is significant upside potential by leveraging technology, talent, customer relationships, and solutions across the businesses over time. With InSystems dominant position in insurance and Standard Registers strength in banking, healthcare, and other markets, there are significant opportunities to do more together.”
While he concedes that a joint marketing agreement might bring many of the same benefits to Standard Register, Peter Dorsman, chief operating officer of Standard Register, notes “there are lots of benefits to the acquisition route,” pointing to InSystems personnel and established position in the insurance market.