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.
“[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.
Andrew Jackson, chief marketing officer and general manager for InSystems eXterity Division, says InSystems brings expertise in paperless business processes to the table.
Dorsman states that his company views the acquisition as “a really unique opportunity to help customers migrate from paper to digital infrastructure. We believe that paper and digital will co-exist.”
Jackson says executives in both companies will continue in their present roles.
“The plan is that InSystems will be owned, but nothing will change,” Dorsman states. He adds, however, that Michael J. Egan, chairman and CEO of InSystems, will be given a new role “to assist us with technology businesses in identifying where the synergies are and how to achieve growth.” He will also “identify possible additional acquisitions,” says Dorsman.
Both companies say no new products are anticipated as a result of the acquisition.
InSystems is a provider of document automation solutions and insurance portal software for managing extended relationships.
InSystems solutions include InSystems Calligo, an integrated document automation software for organizations that need to create, manage and distribute highly personalized, error-free documents, and automate processes including compliance filings, document fulfillment and customer service, the company says.
Standard Registers offerings include secure documents and label solutions, fulfillment and consulting services, and e-business solutions.
Reproduced from National Underwriter Life & Health/Financial Services Edition, July 22, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.