Fiserv, Inc. Agrees to Acquire MedPay
Brookfield, Wisconsin, December 4, 2003-Fiserv, Inc. (Nasdaq: FISV) has agreed to acquire MedPay Corporation, a major provider of workers' compensation prescription services, in a move that further expands its Fiserv Health business. No financial details are being released pending the closing of the transaction. Fiserv expects to close the acquisition in early 2004.
MedPay, based in Memphis, Tennessee, is the parent of Third Party Solutions, Inc. and DirectComp RX, Inc. Third Party Solutions is among the nation's largest providers of workers' compensation prescription processing services. DirectComp helps employers and insurers to lower the costs for their workers' compensation prescription programs.
Leslie M. Muma, Fiserv President and Chief Executive Officer, said the acquisition of MedPay represents an opportunity to expand the fast-growing Fiserv Health group. Fiserv Health offers a variety of technology and business process outsourcing services related to health care transaction processing. "We will continue to look for more ways to build this very important business," Muma said. "We see the entire health care transaction processing industry as an area of growth opportunity for Fiserv."
James Cox, President of Fiserv Health, said MedPay offers Fiserv the ability to expand into workers' compensation prescription services. "This is a very exciting opportunity for Fiserv Health to join with an industry leader in workers' compensation prescription drug processing," Cox said.
Third Party Solutions and DirectComp have more than 200 employees at their Memphis offices. All of the employees, including management, are expected to join Fiserv after the acquisition is completed. Kemmons Wilson Companies, whose namesake was the founder of Holiday Inns, now owns the majority of MedPay.
J.R. Thompson, President of Third Party Solutions, said the sale enables MedPay to join an organization that is focused on the health care transaction processing industry.
"Third Party Solutions and DirectComp will be part of a company with technological expertise and a significant commitment to our industry," Thompson said. "We believe these companies now will have an opportunity to achieve even stronger growth and provide more valuable service to our clients."
Fiserv, Inc. (Nasdaq: FISV) provides industry leading information management systems and services to the financial industry, including transaction processing, outsourcing, business process outsourcing and software and systems solutions. The company serves more than 14,000 clients worldwide, including banks, broker-dealers, credit unions, financial planners/investment advisers, insurance companies and agents, self-insured employers, lenders and savings institutions. Headquartered in Brookfield, Wisconsin, Fiserv reported $2.3 billion in processing and services revenues for 2002. Fiserv can be found on the Internet at www.fiserv.com.