Fidelity National Financial, Inc. Announces Closing of Sedgwick CMS Acquisition and Addition of Thomas H. Lee Partners and Everc
January 31 2006 - 2:24PM
PR Newswire (US)
JACKSONVILLE, Fla., Jan. 31 /PRNewswire-FirstCall/ -- Fidelity
National Financial, Inc. (NYSE:FNF), 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. (NYSE:FNT), 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. First Call Analyst: FCMN Contact:
JFleetwood@fnf.com DATASOURCE: Fidelity National Financial, Inc.
CONTACT: Daniel Kennedy Murphy, Senior Vice President, Finance and
Investor Relations, Fidelity National Financial, +1-904-854-8120,
or Web site: http://www.fnf.com/ http://www.fntg.com/
http://www.fidelityinfoservices.com/ http://www.sedgwickcms.com/
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