Broadspire Buys Cunningham Lindsey TPA`s
Monday, March 22nd, 2004 Risk ManagementBroadspire Services Inc. has bought the third-party claims administration units of Cunningham Lindsey U.S. Inc. Lake Zurich, Ill.-based Broadspire, which was spun off from Kemper Insurance Cos. last year, will now service the existing claims operations of both of RSKCo Services Inc. and Cunningham Lindsey Claims Management Inc. The purchase price was not disclosed, but Cunningham Lindsey will pay Broadspire $22 million for the servicing of existing claims obligations. The acquisition “will position Broadspire as one of the largest independent TPAs in the country,” said Steve Zollo, an executive at Platinum L.L.C., the Los Angeles-based parent company of Broadspire. Based on 2003 revenues, Broadspire was the seventh-largest TPA in the United States. The acquisition likely would put it among the four largest.
