Perot Systems may also have to cough up an additional $18m if certain performance targets are met.
The firm claims the acquisition will enable it to capitalize on growth opportunities in the life insurance and annuity sectors. The addition of Transaction Applications Group’s (TAG) technologies will also extend its own claim and administration processing capabilities in the healthcare sector.
Lincoln, Nebraska-based TAG provides back office administrative and technical support to life, health and annuity providers. The company posted revenues of $44.2m last year, an increase of 45% over the previous year.
We see the unique combination of capabilities and culture created by TAG and Perot Systems as the perfect platform for achieving our long-term plans for growth, diversification and customer care, said TAG president Brian Baxter. We will now be able to provide a powerful suite of technology infrastructure, applications and consulting services to our insurance customers while offering additional career development opportunities to our associates.
The acquisition is expected to close within the next month.
