Sedgwick, a claims management and loss adjustment company, has signed an agreement to acquire the legal spend management (LSM) division of Bottomline, a company known for cash management and business payments.
The transaction is pending customary closure conditions and subject to regulatory approvals. The financial terms of the transaction remain undisclosed.
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The LSM business serves the property and casualty insurance industry by offering cloud-based software applications.
It also provides legal bill review solutions to carriers, third-party administrators, self-insured organisations and corporate legal departments.
Sedgwick will integrate LSM technology infrastructure including the Legal-X and Legal eXchange web platforms to help its clients control the cost of litigation.
The company plans to operate the LSM business as a separate division upon completion of the transaction.
Sedgwick plans to transition nearly 300 LSM employees to maintain continuity of service for clients.
This move is expected to provide enhanced capabilities in e-billing, case management, reporting, analytics and vendor management services.
Morgan Stanley and BofA Securities provided financial advisory services to Sedgwick, while Simpson, Thatcher & Bartlett served as legal counsel.
On the other side, Deutsche Bank Securities advised Bottomline, with Kirkland & Ellis providing legal counsel.
Sedgwick chief operating officer Jim Ryan said: “Bottomline’s LSM business is a strong fit for Sedgwick, and bringing these solutions in-house will enable us to better assist clients in making data-driven decisions regarding their litigation management.
“By integrating industry-leading LSM expertise in third party legal bill review into our existing capabilities, we will elevate the value we bring in meeting the evolving needs of our clients and their customers.”
Bottomline CEO Craig Saks stated: “The combination of Sedgwick’s industry-leading property and casualty claims management services with LSM’s end-to-end legal bill review solutions will be game-changing for customers. This transaction allows Bottomline to redouble our focus on business payments and cash management, while providing a great home for our LSM colleagues and customers.”
Earlier this month, Sedgwick reorganised its US sales team to improve market engagement and the client experience with national and regional structure.
