WAYNE, Pa. & PHILADELPHIA, Nov. 04, 2010 - GENEX Holdings, Inc. (“GENEX”) announced it has entered into a definitive agreement to acquire International Rehabilitation Associates, Inc.’s (“Intracorp”) workers’ compensation and disability case management business. CIGNA Corporation (“CIGNA”-NYSE: CI), the parent of Intracorp, will receive GENEX stock as consideration for the sale, and intends to remain an ongoing GENEX minority shareholder. The combined business will be led by GENEX CEO Peter Madeja and the GENEX management team.
GENEX will continue its and Intracorp’s decades-long history of developing customized solutions for sophisticated workers’ compensation and disability clients. Upon close of the transaction, the combined business will represent the industry’s largest workers’ compensation and disability field case management network, and will be a leading provider of other health care cost containment products. Given the complementary strategies of the two firms, management expects minimal disruption to clients and client-facing professionals during the integration. The transaction is expected to close within the next several weeks. Terms of the agreement were not disclosed.
“We welcome Intracorp’s workers’ compensation and disability clients, our new colleagues and other stakeholders to our combined company,” said GENEX CEO Peter Madeja. “Both GENEX and Intracorp are leaders in the industry due to each firm’s proven history of client focus and proven results. Together we will continue to build upon this strong history, as we develop our combined firm.”
CiGNA's Matt Manders echoed those sentiments.
CiGNA's Matt Manders echoed those sentiments.
“Joining the strengths of two industry leaders will mean the combined organization will be able to focus on continued innovation and offering best in class services in the marketplace,” said Manders, president of CIGNA's U.S. service, clinical and specialty organization. "We are pleased with the transaction announced today, excited about the opportunities it presents and look forward to being a shareholder of GENEX."
According to Manders, CIGNA will continue to offer the health management and wellness programs it currently provides through Intracorp under the CareAllies brand name to employers, Taft-Hartley welfare funds, Federal plans and other plan sponsors; these programs are not affected by the transaction. CIGNA Group Insurance’s disability insurance programs are also not impacted.
About GENEX:
GENEX (www.genexservices.com) provides insurers, employers and Third Party Administrators with a broad array of managed care solutions and information management capabilities through its 2,000 employees and more than 100 service locations throughout North America. The company has a demonstrated ability to help clients manage and control the medical, wage loss, and productivity costs associated with claims in the workers’ compensation, disability, automobile, and health care systems. GENEX services include utilization management, case management, medical bill review, preferred provider organizations, specialty networks, Social Security representation, information management, Medicare Set-Aside and related capabilities.
About Intracorp:
Philadelphia-based Intracorp, a subsidiary of CIGNA Corporation, helps employers maximize their workers' compensation and disability benefits programs to enhance the well-being and productivity of their workforce. Intracorp also offers utilization management, return-to-work programs, ergonomic consulting, medical bill review, provider network access, and information management services. For more information, visit the Web site at www.intracorp.com.
About CIGNA:
Philadelphia-based Intracorp, a subsidiary of CIGNA Corporation, helps employers maximize their workers' compensation and disability benefits programs to enhance the well-being and productivity of their workforce. Intracorp also offers utilization management, return-to-work programs, ergonomic consulting, medical bill review, provider network access, and information management services. For more information, visit the Web site at www.intracorp.com.
About CIGNA:
CIGNA (NYSE: CI) is a global health service and financial company dedicated to helping people improve their health, well-being and sense of security. CIGNA Corporation's operating subsidiaries in the United States provide an integrated suite of health services, such as medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance. CIGNA offers products and services in over 27 countries and jurisdictions and has approximately 60 million customer relationships throughout the world. To learn more about CIGNA, visit www.cigna.com.
