ChoicePoint is acquiring Australian firm Optimal Decisions Group (ODG), which specialises in advanced analytics and software for the insurance industry. Financial terms of the deal were not disclosed.
The move comes after the US-based vendor of risk management and decision-making software said in December that it plans to divest its government software business, and the more recent disclosure in January that an SEC investigation into possible identity theft and insider trading at Choicepoint will not result in enforcement action.
The ODG transaction is not expected to have a material impact on ChoicePoint's financial results. The company does not expect the acquisition to be dilutive to earnings.
ChoicePoint's total revenue from continuing operations in Q4 2007 was flat year on year - $239.3 million versus $238.7 million in 2006. It posted a loss per share of $0.39, compared to $0.41 profit 2006, due to classifying its government services software business as discontinued operations.
ODG provides optimised pricing for auto and home insurance through the use of predictive modelling and multi-year simulation. The acquisition is the sixth that ChoicePoint has made in the insurance technology sector since 2006.
"This reaffirms our strategy to expand and deliver highly advanced analytics through predictive modelling, software and consulting services to the property and casualty insurance market," says Liz Draper, ChoicePoint general manager, insurance analytics. "Integrating ODG's capabilities into our existing insurance analytic solutions will help us deliver the products ChoicePoint's clients are seeking."