Fidelity National Financial, Inc. Announces Closing of Sedgwick CMS Acquisition and Addition of Thomas H. Lee Partners and Evercore Capital Partners as Equity Investors in Sedgwick CMS
January 31, 2006, Jacksonville, Fla. - Fidelity National Financial, Inc. , a Fortune 500 provider of outsourced products and services to a variety of industries, today announced the closing of the acquisition of Sedgwick CMS Holdings, Inc. ("Sedgwick CMS"), an industry leading provider of outsourced insurance claims management services to large corporate and public sector entities.
At the same time, FNF announced that Thomas H. Lee Partners, L.P. ("Thomas H. Lee") and Evercore Capital Partners ("Evercore") have joined FNF as equity investors in Sedgwick CMS. At closing, FNF owns an approximately 40% equity stake in Sedgwick CMS, Thomas H. Lee owns an approximately 40% equity stake and Evercore owns an approximately 20% equity stake in Sedgwick CMS.
"Sedgwick CMS provides FNF a very exciting opportunity in an attractive, growing market, while allowing us to leverage our core expertise in title insurance processing and financial transaction processing," said FNF Chairman and Chief Executive Officer William P. Foley, II. "The addition of Thomas H. Lee and Evercore as equity partners provides for further financial flexibility as we seek future opportunities in the third party administration market place. We believe that the acquisition of Sedgwick CMS will further our continued goal of maximizing the value of our assets for the benefit of our shareholders."
Sedgwick CMS designs, implements and manages innovative outsourced third party administration programs for workers' compensation claims management, liability claims management and disability claims management. The Company's services include claims administration, managed care and related services to clients with high frequency, low severity claim exposures. With expected 2005 revenue of nearly $400 million, Sedgwick CMS is one of the country's largest providers of claims administration services and has more than 400 clients under multi-year contracts in a wide range of industries, including 25 of the Fortune 100 and 72 of the Fortune 500.
The purchase price of $635 million and related fees and other expenses, was funded through a combined $330 million of cash equity investments from FNF, Thomas H. Lee and Evercore and $315 million in borrowings under a senior secured credit facility at Sedgwick CMS.
Fidelity National Financial, Inc., number 261 on the Fortune 500, provides products and outsourced services and solutions to a number of industries. Through its majority-owned, publicly traded subsidiary, Fidelity National Title Group, Inc. , FNF is the nation's largest title insurance company, with nearly 31 percent national market share. Through its majority- owned subsidiary Fidelity National Information Services, Inc. ("FIS"), the Company is a leading provider of core financial institution processing, mortgage loan processing and related information products and outsourcing services to financial institutions, mortgage lenders and real estate professionals. Through its wholly-owned subsidiaries, FNF is also a provider of specialty insurance products, including flood insurance, homeowners insurance and home warranty insurance. Through its minority-owned subsidiary, Sedgwick CMS, FNF is an industry leading provider of outsourced insurance claims management services to large corporate and public sector entities. More information about the FNF family of companies can be found at http://www.fnf.com/, http://www.fntg.com/, http://www.fidelityinfoservices.com/ and http://www.sedgwickcms.com.
Thomas H. Lee Partners, L.P. is a Boston-based private equity firm focused on identifying and acquiring substantial ownership positions in growth companies. Founded in 1974, Thomas H. Lee Partners currently manages approximately $12 billion of committed capital, including its most recent fund, the $6.1 billion Thomas H. Lee Equity Fund V. Notable transactions sponsored by the firm include: Fidelity National Information Services, Axis Capital, Endurance Specialty, HomeSide Lending, Houghton Mifflin, Michael Foods, Nortek, ProSiebenSat.1, TransWestern Publishing, Warner Chilcott, and Warner Music Group.
Evercore Partners, founded in 1996 and with offices in New York, Los Angeles and San Francisco, manages approximately $1.3 billion of committed capital through Evercore Capital Partners and its affiliates. Evercore's investments include American Media, Diagnostic Imaging Group, Michigan Electric Transmission Company, Telenet and TestEquity.
This press release contains statements related to future events and expectations and, as such, constitutes forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be different from those expressed or implied above. The Company expressly disclaims any duty to update or revise forward- looking statements. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to, the effect of governmental regulations, the economy, competition and other risks detailed from time to time in the "Management's Discussion and Analysis" section of the Company's Form 10-K and other reports and filings with the Securities and Exchange Commission.Back to previous