Fiserv To Acquire The Freedom Group From Allied
Fiserv, Inc. says it has signed a letter of intent to acquire The Freedom Group, a subsidiary of Allied Group, Inc., which was recently acquired by Nationwide. Based in Cedar Rapids, IA, The Freedom Group is a provider of software and services to the property and casualty insurance industry, with annualized revenues of approximately $30 million. Terms of the letter were not disclosed.
"The Freedom Group offers an excellent addition to our Insurance Solutions division, and will bring new technology resources and specialized expertise to this growing area of our business," said George D. Dalton, chairman and chief executive officer of Fiserv. "In recent years there has been a convergence of the traditional lines between banking and insurance. Fiserv, a leading processor for banks, has stepped into this new growth area for information technology, first with our acquisitions earlier this year of Network Data Processing and Specialty Insurance Services, and now through this latest agreement. With the professionals and resources of The Freedom Group as part of Fiserv, we will continue to expand on our capabilities in the insurance processing arena.''
The Freedom Group provides specialized software products and services to the insurance industry, including software products for the property and casualty segment; implementation and consulting services; and outsourcing for insurance companies. The company was formed in 1986 and currently employs approximately 280 professionals at its offices in Cedar Rapids and Des Moines, IA.
Allied Group's President and CEO, Douglas L. Andersen, said, "Allied has been considering strategic options with respect to The Freedom Group since early this year, well before Nationwide announced its tender offer."
"We are extremely excited about the possibilities this acquisition offers FREEDOM clients," said Larry J. Kane, president of The Freedom Group. "Our market leading products and services will continue to provide value to our clients by taking advantage of the new synergistic opportunities associated with the wide ranging Fiserv family of companies. As the financial and insurance industries continue to blend, our combined companies bring a vast array of software systems and expertise to our clients to help them manage this convergence."
The Freedom Group's leading products include the Freedom Financial Series, a modular system designed to meet the financial objectives of insurance companies; a Property/Casualty Policy Administration System; and the new Claims Workstation product. In addition to its insurance-specific solutions, The Freedom Group offers a growing number of financial management and processing products to other industries, including the market-leading Tracker Unclaimed Property Reporting System and its enterprise-wide MICR distributed disbursement system know as Check-EZE. All of The FR Group's products and systems were designed to support processing for the Year 2000.