Broadspire Services Signs Definitive Agreement to Sell Disability Services Division to Aetna; Casualty Claims Business to Focus on Growth Strategy; Strengthen Operations and Technology.PLANTATION Plantation, city (1990 pop. 66,692), Broward co., SE Fla., a residential suburb of Fort Lauderdale; inc. 1953. The city has grown rapidly along with the development of S Florida. , Fla. -- Broadspire Services, a Platinum Equity Platinum Equity is an American information technology and private equity firm. It was founded by billionaire Tom Gores in 1995 and is headquartered in Beverly Hills, California. company that is a premier provider of casualty and disability claims management, announced today that it is selling its disability management services division to Aetna, one of the nation's leaders in health care, dental, pharmacy, group life, disability and long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. benefits. The transaction, which is subject to normal closing conditions, is expected to be completed during the second quarter of 2006. "This is a win-win-win transaction for customers, Broadspire and Aetna," said Dennis Replogle, Broadspire's president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Broadspire will be able to strengthen its casualty business with greater focus and investment, Aetna will enhance its integrated health and disability business, and our customers will see greater value and performance from improved products and services as both organizations execute on their go-forward growth plans. We are eager to work with Aetna as a new strategic partner." Broadspire's disability services division provides companies with programs and services that assist ill or disabled employees with their health care and efforts to return to productive employment. The business has about 85 customers and 850 employees located at Broadspire's corporate headquarters in Plantation, Fla., and throughout the country. When the transaction is completed, customers who rely on Broadspire for both casualty and disability management will continue to receive bundled services with no changes or disruption in service. Broadspire will continue to offer integrated services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. to interested customers. "Our parent company, Platinum Equity, is committed to building on our strong foundation and helping our casualty claims business achieve additional growth," Replogle said. "Our plan for the future is clear. It will include efforts to streamline processes, raise service quality in our branch offices to the highest level possible, and deploy a new casualty claims system. We'll continue to leverage one of our most significant competitive advantages, our strong managed care services, to bring additional value to our clients." After closing, Aetna intends to integrate Broadspire's disability unit into its disability organization. Peg Haennicke, president of Broadspire's disability services division, views the transaction as a tremendous opportunity for her division and its employees. "We can see powerful synergies between Aetna and our disability services business. We expect the integration of the two businesses to produce powerful results." Platinum Equity acquired Broadspire in July 2003 from the Kemper Insurance Companies. Platinum established the organization as a stand-alone company stand-alone company An independent operating firm. For example, a large diversified firm may consider spinning off a subsidiary because, as a stand-alone company, the subsidiary would command a higher price-earnings ratio than the parent. and re-launched it under the Broadspire name. Subsequently, Platinum operations executives worked with Broadspire leadership to drive operational improvements within the business, and empowered the management team to grow enterprise value. "Broadspire's disability services division is a strong, growing business, and we are confident the division will continue to thrive under Aetna," said Jim Levitas, senior vice president of mergers and acquisitions for Platinum Equity. "Our president and CEO, Tom Gores Tom Gores is a self made financier whose investment holdings include California leveraged buyout business Platinum Equity, where he is founder, chairman and chief executive officer. Through Platinum Equity, Mr. , is very pleased with the division's performance under Platinum's ownership over the past three years. This is an excellent organization, and it will be a strong addition to the Aetna portfolio of products and services." About Platinum Equity Platinum Equity (http://www.platinumequity.com) is a global M&A&O(R) firm specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, software, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , logistics, manufacturing, and entertainment distribution. Since its founding in 1995 by entrepreneur Tom Gores, Platinum has acquired more than 60 businesses with more than $12 billion in aggregate revenue at the time of acquisition. About Broadspire Broadspire (http://www.choosebroadspire.com), a Platinum Equity company, offers the broadest array of absence management services in the industry. Those services include workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. , auto liability, general liability and short- and long-term disability claims management services; Family Medical Leave Act administration; total disability management programs; field care and medical management services; and risk and safety consulting. Broadspire, based in Plantation, Fla., with 2,800 employees throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , creates customized solutions designed to increase employee productivity and contain costs. About Aetna Aetna is one of the nation's leading diversified diversified (di·verˑ·s health care benefits companies, serving approximately 27.9 million unique members with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health Behavioral health was first used in the 1980's to name the combination of the fields mental health and substance abuse. As an example, an organization serving both mental health and substance abuse clients might refer to its practice as behavioral health or , group life, long-term care and disability plans, and medical management capabilities. Our customers include employer groups employer group Association of employers Managed care An entity with a current group benefits agreement in effect with a health plan to provide covered health care services to its employee-subscribers and eligible dependents. , individuals, college students, part-time and hourly workers, health plans and government-sponsored plans. http://www.aetna.com |
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