Perot Systems Corporation will acquire Technical Management, Inc. and its subsidiary Transaction Applications Group (TAG), a provider of policy administration and business process services to the life insurance industry.
Perot Systems will acquire all the stock of TAG for $65 million in cash, plus up to $18 million more if certain performance targets are met. The acquisition is expected to close within the next month.
TAG, located in Lincoln, Nebraska, provides full-service back office administrative and technical support to life, health and annuity providers. The company had revenues of $44.2 million in 2004, an increase of 45 percent over the previous year.
“TAG is an excellent addition of life insurance and annuity processing expertise and intellectual property to Perot Systems’ global business process capabilities,” said Peter Altabef, president and CEO of Perot Systems. “During the past three years, Perot Systems has built a set of industry-focused business process offerings that have enabled us to better and more comprehensively serve our clients. The talent and experience of more than 850 new team members from TAG will help position the company to capitalize on promising growth opportunities in the life insurance and annuity sectors and add to our existing claim and administration processing capabilities in the healthcare sector.”