CNA UniSource To Acquire Payroll Services Provider Interlogic Systems, Inc.; Najeeb Khan To Lead Combined Organization.CHICAGO--(BUSINESS WIRE)--April 30, 1998--CNA UniSource, the Professional Employer Organization A professional employer organization (PEO) provides outsourcing of payroll, workers' compensation, human resources and employee benefits administration. It does this by hiring a client company’s employees, thus becoming their employer of record. (PEO) formed by Chicago-based CNA (Certified NetWare Administrator) See Novell certification. (NYSE NYSE See: New York Stock Exchange :CNA) last year, today acquired payroll services provider Interlogic Systems, Inc., (ISI ISI International Sensitivity Index, see there ) of Elkhart, Ind. Terms of the transaction were not disclosed. As part of the transaction, ISI 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. Najeeb A. Khan, has agreed to become president and chief executive officer of the combined operation Noun 1. combined operation - a military operation carried out cooperatively by two or more allied nations or a military operation carried out by coordination of sea, land, and air forces . Khan founded ISI in 1987 and has since built it into one of the nation's top 10 payroll services providers. In his new position, Khan will maintain oversight responsibility for ISI whose brand name will continue to be used in the marketplace because of its highly regarded reputation in the payroll services business. "Being a part of the CNA organization enhances our ability to offer our current customers continued excellent service with the additional security of a financially strong, stable and committed company behind us," said Khan. "And for the dedicated employees who have made ISI what it is today, this represents an exciting opportunity to be part of a new organization that is fast becoming a major player in the growing PEO market." CNA UniSource offers small- and mid-sized business owners payroll administration as part of a comprehensive package of employer-provided services that includes human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , employee benefits, and 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. services. CNA UniSource's strategic growth plans include continuing to grow ISI as one of the nation's leading payroll service providers. The CNA UniSource and ISI business relationship began last year when CNA UniSource contracted with ISI to provide payroll services to its PEO clients. "The response to CNA UniSource has been very positive," said Mike McGavick Michael S. "Mike" McGavick (born February 7, 1958 in Seattle, Washington) is a former American business executive and a graduate of the University of Washington. McGavick was a Republican candidate for the US Senate seat held by Maria Cantwell in the 2006 election, but , CNA UniSource Board Chairman. "Business owners tell us the administrative hassles of running a business are costly, time-consuming and frustrating, and they are increasingly looking to CNA UniSource to provide a solution. "We are delighted to have a proven entrepreneur and leader join our team. Khan brings a wealth of experience and dedication to the employer services industry, which is the heart of what CNA UniSource is all about." McGavick also serves as president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. for CNA Commercial Operations. CNA Chairman and CEO, Dennis Chookaszian, applauded the tremendous value of the transaction. "PEOs are going to be a critical part of America's future workplace, and CNA intends to be part of this cutting edge business. With the acquisition of ISI and Khan's leadership role, we are poised to make our mark in this dynamic, transformational industry," said Chookaszian. "Outsourcing is becoming an effective way for today's smaller businesses to focus on their core business while relying on PEO providers to handle their administrative duties." ISI employees joined CNA UniSource at the transaction's closing. ISI has approximately 150 employees at its offices in Elkhart and at additional facilities in Fort Wayne and Indianapolis, Ind.; Oak Brook, Ill.; Grand Rapids, Mich.; Atlanta, Ga.; Tampa, Fla.; Phoenix, Ariz. and Dayton, Ohio. Since it was formed last year, CNA UniSource is now operating in 10 states. By the end of 1998, CNA UniSource expects to offer a comprehensive package of administrative services to small- and medium-sized businesses in most states that allow co-employment law. Under the PEO arrangement, client worksite employers and CNA UniSource share in the employment responsibilities for the clients' employees. Thus, CNA UniSource is engaged by the worksite employer to provide administrative support in the areas of human resources, employee benefits, workers' compensation services and payroll processing. In addition, the volume buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. of CNA UniSource allows PEO clients to offer their employees benefits frequently only available with larger companies. CNA UniSource is an equal opportunity employer equal opportunity employer An employer or enterprise that does not discriminate against a job candidate, or subject him/her to adverse exclusionary criteria, based on race, sex, religion, or national origin. See Equal employment opportunity. . To explore job opportunities with CNA UniSource, go to www.cna.com\cnaunisource. CNA UniSource is a subsidiary of CNA. Since 1897, CNA, one of the national's largest insurance organizations, has built on a foundation of financial strength, stability and commitment to customers and business partners. CNA is a registered service mark and trade name of CNA Financial Corporation. CONTACT: CNA Media contact: Roger Morris, 312/822-4195 Clark Walter, 312/822-1454 Analyst Contact: Deborah Kamp, 312/822-7752 |
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