Fiserv acquires Administrative Services Group
06 July 2005 | 1824 views | 0
Fiserv, Inc. (Nasdaq:FISV) announced today that it has acquired Administrative Services Group Inc. (ASGI), an employee benefits plan administrator.
The purchase of ASGI, which will operate as part of Fiserv Health, will allow the transaction technology provider to expand its share of the health benefits administration market. The purchase price was not disclosed.
ASGI, based in Lexington, Ky., markets its self-funded services under the name Commonwealth Administrators LLC. The regional administrator provides single-employer, self-funded health plan administration primarily to companies in Kentucky and Indiana. ASGI is the largest administrator of trade association health plans in Kentucky.
The acquisition of ASGI will allow Fiserv Health to continue its growth within the rapidly expanding benefits administration market, according to Leslie M. Muma, Fiserv's president and chief executive officer.
"Health benefits administration has become a vital service for Fiserv and the acquisition of ASGI will help Fiserv Health compete even more effectively in this critical market," Muma said.
Fiserv Health administers health plans for more than 1,700 clients nationwide, serving self-insured employers and governmental entities of all sizes. In serving those clients, Fiserv Health processes more than 32 million claims worth more than $6.6 billion annually. The business group contributed 26 percent of Fiserv's revenue of $3.4 billion in 2004.
The ASGI acquisition adds to Fiserv Health's roster of national and regional health plan administration brands, according to Jim Cox, group president of Fiserv Health. ASGI's capabilities, in addition to single-employer plan administration, include ancillary services such as benefit plan consulting and administration and Taft-Hartley eligibility administration for union-sponsored health benefit plans. The acquisition will further broaden Fiserv Health's capabilities, Cox said.
"The ASGI acquisition enables us to add self-funded administration market share and significantly expand our presence among trade associations," said Cox. "This acquisition will allow us to add volume without significantly increasing infrastructure."
Joining Fiserv will provide the Commonwealth Administrators brand the ability to grow within the marketplace, according to Helmut Braun, ASGI's chief executive officer.
"There's tremendous opportunity out there for health benefits administrators," said Braun. "We're excited to be part of Fiserv and look forward to growing in the market as part of the Fiserv brand."