Eagle Claim combines with California firm
Friday, March 6 2009
SALINA--Eagle Claim Services, Inc., a 5-year-old, third-party administrator (TPA) focusing on workers'-compensation and disability claims, is now part of Irvine, Calif.-based CorVel Corporation (NASDAQ: CRVL).
CorVel acquired Eagle in a total stock purchase that closed on Feb. 19. Neither side is releasing financial terms, says Scott Murray, CEO of Eagle Claim Service.
The deal involves a merger of services, says Glen Zinszer, Eagle's president, whereby Eagle takes advantage of CorVel's expertise in managed-care services, and CorVel is able to expand its reach with Eagle's specialty, administering workers'-compensation claims.
Both Murray and Zinszer, the company founders, have stayed in their positions following the transaction, so Eagle doesn't consider the transaction a buy-out, says Zinszer.
With new services to offer and the backing of a larger organization, the merger of services enables Eagle to pursue clients in the entire Northeast, he says.
Until now, the firm only focused on self-insured clients in upstate New York, including school districts, local governments, manufacturers, nursing homes, and hospitals.