Business process and document management giant Xerox Corp (XRX) recently announced an agreement for the acquisition of ISG Holdings, Inc., the parent company of healthcare technology firm ISG Services LLC, for $225 million. With this acquisition, Xerox strengthens its payment and compensation services unit in the property and casualty insurance sectors.
The acquisition of ISG Holdings will include ISG Holding's StrataCare – a provider of web-based medical bill review software, and Bunch CareSolutions – a provider of medical management solutions in the fields of medical bill review and nurse case management.
The deal is a win-win situation for both companies as it plays on the strengths of both the parties. While Xerox already has a strong foundation with transactional expertise in servicing property, casualty and commercial health insurance companies, ISG has a comprehensive suite of secure and compliant SaaS (Software as a Service) cloud delivery platform, care management services and analytics.
Xerox will be able to provide end-to-end solutions to organizations involved in servicing workers’ compensation claims by providing comprehensive reviews of medical bills and implementation of care management plans. This acquisition is expected to propel Xerox to the leading position as a service and software provider to companies, who pay approximately $60 billion in medical bills to workers annually.
Xerox is a leader in the development, manufacture, marketing, servicing and financing of document equipment across the world. The company offers business process outsourcing and IT outsourcing services, including data processing, healthcare solutions, HR benefits management, finance support, transportation solutions, and customer relationship management services for commercial and government organizations globally.
Xerox currently has a Zacks Rank #4 (Sell). Other stocks that look promising and are worth a look now include Hewlett-Packard Co. (HPQ), Canon Inc. (CAJ) and Pitney Bowes Inc (PBI), all carrying a Zacks Rank #2 (Buy).