In a deal just done, workers comp managed care firm MCMC will be/has acquired California-based CompPartners. The deal gives MCMC a greater footprint in the nation’s largest workers’ comp market, and adds significant strength in physician peer review along with CompPartners’ MPN network.
CompPartners’ clients include the state fund of California (SCIF). Bunch and Associates, Liberty, AIG, TriStar, and Harbor America. As MCMC does not have much business with most of these, there’s every indication that CP staff will remain in place to serve existing customers and find cross-selling opportunities to deliver MCMC services to Comppartners’ present customer base.
Word from an informed source close to the deal is the two companies will continue to operate separately although cross-selling will be key to leveraging the deal. The transaction, which closed before the end of the year, was a stock deal which makes a great deal of sense for all parties.
Finally, adding significant strength in California has long been a need for MCMC. Acquiring CompPartners gives them a staff with long experience and a solid track record in the Golden State, along with a robust client list, certified/licensed product/service offerings, and all the benefits of taking over a going concern.
The net – Smart deal for both parties, and good news for their clients and owners.