One insurance software company has completed a recently announced deal to acquire a competitor.[@@]
The acquirer, WorldGroup Inc., Emeryville, Calif., has scooped up Taliant Software L.L.P., Denver, and renamed the combined entity InsureWorx Inc.
InsureWorx executives predict the company will generate about $40 million in revenue this year.
WorldGroup and Taliant are not discussing the price of the deal. But “the sellers will continue to have some equity participation in the new company,” says InsureWorx President Gary Sherne, who previously was president of WorldGroup.
The ultimate parent of the combined company will be WorldGroup Holdings Ltd.
Both WorldGroup and Taliant have focused on developing systems that can handle tasks such as claim processing and policy administration for workers’ compensation insurers.
But executives at InsureWorx say the company also will sell an integrated benefits system that can support insurers’ group life, group disability, health insurance operations.
Both WorldGroup and Taliant have built their systems to meet J2EE software integration standards. Sherne says the companies will continue to stick with the J2EE standards rather than shifting to the .NET standards developed by Microsoft Corp., Redmond, Wash.
Jim Haley, the founder of Taliant, is now the chief marketing officer at InsureWorx, and Neil Baker, chief executive of Taliant, has joined the InsureWorx board.
InsureWorx will use the old WorldGroup offices in Emeryville as its headquarters, and it will maintain a “major development center” in Taliant’s offices in Denver.
InsureWorx now has a staff of about 250, and “there weren’t any layoffs, really,” despite the fact that there was “a little redundancy in terms of programs,” Sherne says.
InsureWorx still wants to hire a general counsel, Sherne says.