Memphis, Tenn. and Jacksonville, Fla., May 16, 2006 Sedgwick Claims Management Services, Inc. (Sedgwick CMS), the leading provider of innovative claims and productivity management solutions, and Fidelity National Financial, Inc. (NYSE:FNF), along with their partners Thomas H. Lee Partners and Evercore Capital Partners, today announced that Sedgwick CMS has acquired VPA, Inc. (VPA), a privately-held Calabasas, California-based claims services organization specializing in absence and disability benefit management programs for large employers. VPA has annual revenue of approximately $20 million.
VPA has built and maintained national business relationships through its expertise in the design and administration of complex short-term and long-term disability, family and medical leave and other customized absence management plans. Established in 1979 with an initial focus on California State Disability Insurance (SDI) programs, the firm became well known under the leadership of industry pioneer Jack Bredehorn (1933 2003) for helping clients reduce absenteeism and control losses.
"VPA enjoys an exceptional reputation for the quality of its services and the technical expertise of its people," said Sedgwick CMS President and Chief Executive Officer David A. North. "The strategic fit between the two organizations will enrich our offerings to clients. VPA's focus on disability and absence management programs for large employers will reinforce the fastest growing component of our business, and their longstanding involvement with self-insured SDI programs will significantly enhance Sedgwick CMS's capabilities in that area of specialization. Furthermore, both of our cultures emphasize commitment to clients and to colleagues. We are very pleased to welcome the outstanding VPA team to Sedgwick CMS."
"We are excited to add further strategic capabilities to our industry-leading platform at Sedgwick CMS," said FNF Chairman and Chief Executive Officer William P. Foley, II. "We have stated goals of seeing Sedgwick CMS reach a revenue base of $1 billion over the next eighteen to twenty four months and maximizing the value of Sedgwick CMS for our shareholders. This acquisition of VPA is another milestone in our efforts to reach those goals."
The VPA organization will be integrated into Sedgwick CMS and will operate under the Sedgwick CMS identity. VPA Vice President of Operations Julie Santen will be vice president and operations manager for the new Sedgwick CMS office in Calabasas.
Sedgwick Claims Management Services, Inc. is the leading provider of innovative claims and productivity management solutions. Sedgwick CMS delivers cost-effective claims administration, managed care, program management and related services to major employers through the expertise of 4,500 colleagues in more than eighty offices in the U.S. and Canada. The company specializes in workers' compensation; disability, FMLA and other employee absence; and general, automobile and professional liability claims services. Sedgwick CMS designs and implements customized programs based on proven practices that meet client needs. For more see www.sedgwickcms.com.
Fidelity National Financial, Inc. (NYSE:FNF), number 248 on the Fortune 500, is a provider of outsourced products and services to a variety of industries. Through its majority-owned, publicly-traded subsidiary, Fidelity National Title Group, Inc. (NYSE:FNT), FNF is the nation's largest title insurance company, with nearly 31 percent national market share. Through its majority-owned, publicly-traded subsidiary, Fidelity National Information Services, Inc. (NYSE:FIS), FNF provides an industry leading suite of data processing, payment and risk management services to financial institutions and retailers. Through its wholly-owned subsidiaries, FNF is also a leading provider of specialty insurance products, including flood insurance, homeowners insurance and home warranty insurance. Through its minority-owned subsidiary, Sedgwick CMS, FNF is a leading provider of outsourced insurance claims management services to large corporate and public sector entities. More information about the FNF family of companies can be found at www.fnf.com, www.fntg.com and www.fidelityinfoservices.com and www.sedgwickcms.com.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about FNF's beliefs and expectations, are forward-looking statements. Forward-looking statements are based on FNF management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future economic performance and are not statements of fact, actual results may differ materially from those projected. FNF undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business and political conditions, including changes in the financial markets; adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak U. S. economy; FNF's potential inability to find suitable acquisition candidates, acquisitions in lines of business that will not necessarily be limited to its traditional areas of focus, or difficulties in integrating acquisitions; FNF's dependence on operating subsidiaries as a source of cash flow; significant competition that FNF's operating subsidiaries face; compliance with extensive government regulation of FNF's operating subsidiaries; and other risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of FNF's Form 10-K and other filings with the Securities and Exchange Commission.
Sources: Sedgwick Claims Management Services, Inc. and Fidelity National Financial, Inc. Contacts: Sedgwick CMS - Frank J. Huffman, Senior Vice President, Corporate Communications, (901) 415-7548, firstname.lastname@example.org; FNF - Daniel Kennedy Murphy, Senior Vice President, Finance and Investor Relations, 904-854-8120, email@example.com
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