Trending >

Automated Benefits Makes a Splash with MSB Acquisition

Automated Benefit's Symbility division has had recent high-profile wins, adding the Chubb Insurance Canada and the property division of Farmer's Insurance as customers.

Automated Benefit's Symbility division has had recent high-profile wins, adding the Chubb Insurance Canada and the property division of Farmer's Insurance as customers.
Until recently, Automated Benefits (TSXV:AUT), a Toronto based company that provides claims processing for the insurance industry, seemed happy with incremental growth. The company was expanding its operations, but the scale was quite small. Fiscal 2010’s revenue of $5.85-million was a big percentage increase over 2008, but that year’s top line was a scant $3.23-million.

Last week, however, Automated Benefits completed an acquisition that instantly changes the scope of its business. The company issued just over 52-million shares to pay $18.1-million for Marshall & Swift/Boeckh, LLC’s (MSB) claims division.

______________________________________________________________________________________________________________________

This story is brought to you by Agrimarine (TSXV:FSH). Not all salmon farms are the same. Click here to learn how Agrimarine is meeting consumer demand for sustainable aquaculture.

________________________________________________________________________________________________________________________

MSB, which is owned by Kansas City based market research firm Decision Insight, has made an investment into Automated Benefits, and three execs from Decision Insight have joined the board. With 33.29% of all Automated Benefits common shares, Decision Insight is now the largest single shareholder in the company. The acquisition values the claims division of MSB at a little more than two-times sales, as Automated Benefits says the company’s annualized revenue was approximately $8-milion, noting that the division is profitable “excluding discontinued software development costs at this time.”

Automated Benefits is divided into two operating divisions, Automated Benefits Inc., which develops software to improve health and dental claims, and Symbility Solutions, which focuses on property claims. Symbility speeds up property claims and makes the process more transparent by giving every claim participant real-time access and collaborative tools.

The MSB acquisition punctuates a momentous beginning to 2012 for Symbility. In January, the company announced it will provide a claims processing and estimating solutions to the property division of Farmer’s Insurance, and followed that up by signing a five-year agreement with Chubb Insurance Company of Canada in March.

At press time, shares of Automated Benefits were up 4% to $.52 cents.

______________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________

  •  
  •  
  •  

About The Author /

Nick Waddell
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Access Expert Stock Picks for free

CLOSE

Get Stock Picks From The Pros

Sign up for our newsletter to get timely Canadian stock picks from expert financial analysts.