Tower Watson has announced to buy Liazon Corporation in a deal worth $215 million. This deal reconfirms market trend towards the bright future of private health exchanges.
Liazon corporation was founded in 2007. Through Bright Choices Exchange, it provides an online benefit store. Company argues to save lot of money from both employee and employer front, through its flagship product. The product has capability to set predictable budget and also allows employee to personalize the package with different types of insurance coverage. On sales side Liazon has a strong hold on broker relationship throughout the country.
Towers Watson & Co. is a global professional services firm based at New-York. Through its major lines of business are risk management and human resource consulting, it also supports actuarial and investment consulting practices. When firm was formed after acquisition of Towers Perrin and Watson Wyatt Worldwide, it was world's largest employee benefit consulting firm by revenue.
Acquisition of Liazon Corporation is a move towards increasing the depth of products that Liazon has in its portfolio. Prior to this, Towers Watson has also acquired Extend Health in June 2012. Both of these acquisitions will add the strength of One Exchange Solution, the private exchange market of company. Also Towers will also get access to a huge distribution network of over 400 brokers including largest insurance brokers. On financial statement front, this acquisition will have a dilutive effect on adjusted EPS of about $0.10 to $0.15 in fiscal 2014.
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