ChoicePoint sells Priority Data Systems to AMS
02 October 2006 | 1864 views | 0
ChoicePoint (NYSE:CPS) today announced its signing of a strategic alliance agreement with AMS Services that will extend ChoicePoint's capabilities for data sales to thousands of additional insurance agents and industry professionals nationwide. The agreement was signed simultaneously with the sale of ChoicePoint's Priority Data Systems business to AMS Services.
AMS Services is a leading provider of connectivity services to insurance agents, carriers, managing general agents and wholesale brokers. Based near Seattle, AMS Services also provides comprehensive, insurance-specific solutions for managing critical business activities, including agency management, rating, benefits, performance management and carrier/agent connectivity.
Based in Omaha, Priority Data Systems provides comparative rating software solutions primarily to the independent insurance agency market.
"ChoicePoint is pleased to align with AMS Services in a relationship which we believe will enhance and extend our core business and services," said Jeffrey Glazer, president of ChoicePoint's Insurance Services group. "This new alliance supports ChoicePoint's position as the personal lines industry's premier provider of the most complete and integrated array of insurance products and services to companies and agents."
Terms of the agreements were not disclosed. The divestiture is not expected to have a material impact on ChoicePoint's continuing operating results.
ChoicePoint will record an after-tax loss of approximately $3-4 million in the divestiture, but the company believes the strategic alliance with AMS Services will provide significant long-term benefits. Under the agreement, ChoicePoint will immediately gain access to AMS Services' platform for data sales to their 15,000 independent insurance agencies and 150,000 end-users.