Published:
ACS to Acquire CompIQ Corporation
DALLAS, April 28 /PRNewswire-FirstCall/ -- Affiliated Computer Services,
Inc. (NYSE: ACS) today announced an agreement to acquire CompIQ Corporation
(CompIQ), anIrvine, California-based provider of workers' compensation claims
review, re-pricing and software solutions for $22 million, plus contingent
payments based on future financial performance. The transaction will be funded
with a combination of cash on hand and borrowings under ACS' existing credit
facility. The acquisition is expected to close in May 2008, subject to
customary conditions.
CompIQ is a national provider of medical bill review and cost-containment
services for the workers' compensation, group health and liability insurance
industries. Utilizing its proprietary web-based software, IQReview, CompIQ
enables clients to save money and increase operating efficiency by re-pricing
medical bills in accordance with usual and customary rates, state and hospital
fee schedules and preferred provider organization discounts.
"This acquisition demonstrates our commitment to helping our clients
manage their insurance and healthcare costs by providing technology-enabled
medical bill review and recovery services," said Tom Blodgett, group president
of ACS Business Process Solutions. "The addition of CompIQ gives us
capabilities we do not possess today and helps differentiate ACS as a leading
provider of responsive, reliable and flexible solutions to the healthcare and
insurance payer markets."
CompIQ's trailing twelve month revenue for the period ending March 31,
2008, was approximately $17 million. The business will be known as ACS CompIQ
and will continue to be managed by CompIQ's existing executive team, adding
approximately 130 employees to ACS operations.
"The combination of ACS and CompIQ increases our ability to penetrate the
bill review market," said Art Zeiner, Jr., founder and chief executive officer
of CompIQ. "ACS will be able to leverage our industry expertise to provide
end-to-end audit, bill review and recovery services, and we will be able to
cross sell the full suite of ACS services to our existing clients. We look
forward to helping ACS meet its long-term growth objectives, not only by
providing state-of-the-art administrative services, but also by enabling our
clients to manage their overall healthcare, insurance and operating costs."
CompIQ was founded in 1997 and has become the premier national provider of
medical bill review software and services to the workers' compensation, group
health and liability insurance industry. It developed the first paperless
workflow for medical bill review, incorporating an innovative web-based tool
that allows claims professionals to view medical bills and re-pricing
information from their desktop without exiting their claim management
software. CompIQ is also an expert in the development of electronic data
interface for integration, offering a wide variety of software applications
used in the management and adjudication of workers' compensation claims. In
addition to its software solutions, CompIQ provides customized offerings
designed to fit the unique requirements of every cost-containment program.
ACS, a global FORTUNE 500 company with 62,000 people supporting client
operations reaching more than 100 countries, provides business process
outsourcing and information technology solutions to world-class commercial and
government clients. The company's Class A common stock trades on the New York
Stock Exchange under the symbol "ACS." Learn more about ACS at
http://www.acs-inc.com.
The statements in this news release that do not directly relate to
historical facts constitute "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements are
subject to numerous risks and uncertainties, many of which are outside the
Company's control. As such, no assurance can be given that the actual events
and results will not be materially different than the anticipated results
described in the forward-looking statements. Factors could cause actual
results to differ materially from such forward-looking statements. For a
description of these factors, see the company's prior filings with the
Securities and Exchange Commission, including our most recent filing. ACS
disclaims any intention or obligation to revise any forward-looking
statements, whether as a result of new information, future event, or
otherwise.
SOURCE Affiliated Computer Services, Inc.
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