Metavante Corporation, the financial technology subsidiary of Marshall & Ilsley Corporation (M&I) (NYSE: MI), today announced the signing of a definitive merger agreement to acquire AdminiSource Corp. of Carrollton, Texas.
The company will continue to operate under the name of AdminiSource, and will become an affiliate of Metavante Corporation, with existing management continuing in their positions.
Terms of the transaction were not disclosed. The acquisition is expected to close in the fourth quarter, pending regulatory approval and other customary closing conditions. The purchase is not expected to have a material impact on the financial results of Metavante or M&I.
AdminiSource is a leading provider of health care payment distribution services, providing cost-effective printed and electronic payment and remittance advice distribution services for payer organizations nationwide, such as claim check, billing statements, ID card and welcome kit fulfillment services to insurance carriers, and other health care organizations.
"AdminiSource presents Metavante with additional capability to expand our growing health care payment solution," said Frank R. Martire, Metavante president and chief executive officer. "Acquiring AdminiSource also enhances our focus on helping clients transition from paper-based to electronic payments and information flow within the health care industry."
AdminiSource will enable Metavante to further expand its participation in the consumer-directed health care payments area begun with the 2003 acquisition of Printing for Systems (PSI), a leading provider of identification cards to the health care insurance industry, and the 2005 acquisition of MBI Benefits, a leading provider of benefits cards electronic payment services for employee benefit and consumer-directed health care accounts.
"Consumer-directed health care payments complement Metavante's existing consumer-directed electronic payment solutions, such as online bill payment and presentment, flexible spending accounts and prepaid debit cards," said Frank D'Angelo, president and chief operating officer, Metavante Payment Solutions Group. "The AdminiSource market position complements our existing services to the third-party administrator market and offerings to health care insurance providers, such as health savings accounts."
According to Dennis Magill, AdminiSource president, chairman and chief executive officer, the payment solutions of AdminiSource integrate well with Metavante and offer additional opportunities for cross-sell within the companies. "We are very pleased to have the opportunity to work with other Metavante companies to create solutions that fit the current health care industry's need for consumer-directed health care and cost-effective solutions."