KKR nears $2bn deal for Sedgwick Claims Management Services


US buyout group KKR is reportedly close to signing a deal to buy US claims processor Sedgwick Claims Management Services from private equity peers Hellman & Friedman and Stone Point Capital for over $2bn.

Hellman & Friedman and Stone Point paid $1.1bn for Sedgwick in 2010, buying it from private equity firms Thomas H Lee Partners and Evercore Capital Partners.

The company provides claims and productivity management services, and was also formerly part-owned by Fidelity National Financial. It specialises in workers’ compensation; disability, FMLA, and other employee absence; managed care; general, automobile, and professional liability; warranty and credit card claims services; fraud and investigation; structured settlements; and Medicare compliance solutions.

Last week KKR-backed software group SunGard Data Systems sold its availability services business to the private equity firm, alongside fellow backers Silver Lake, Bain Capital, Blackstone, Goldman Sachs Capital Partners, Providence Equity Partners and TPG, which acquired the business for $11.4bn in 2005.

KKR also recently paid $1.1bn for claims software company Mitchell International.

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