Fidelity National to Buy Sedgwick for $635M
Tuesday, December 27th 2005, 10:43 am
By: News On 6
JACKSONVILLE, Fla. (AP) _ Insurance underwriter Fidelity National Financial Inc. has agreed to acquire Sedgwick CMS Holdings Inc. for $635 million.
Sedgwick provides outsourced insurance claims management services. It is based in Memphis, Tenn.
According to Sedgwick, the main sellers are Marsh & McLennan Cos., through its risk and insurance services firm Marsh Inc., and a private-equity fund managed by Stone Point Capital LLC.
In a press release Tuesday, Jacksonville-based Fidelity National said it expects to fund the acquisition through a combination of cash on hand and borrowings under existing lines of credit.
Fidelity National expects to complete its purchase Jan. 31.
Fidelity National said Sedgwick is expected to have 2005 revenue of almost $400 million. In the first nine months of 2005, Fidelity National had revenue of $7.24 billion.