(Photo credit: Paul Keheler.)
Mitchell International (San Diego), a provider of technology, connectivity and information solutions to the property/casualty insurance and collision repair industries, and Genex, a provider of clinical solutions to the workers’ compensation, auto and disability insurance markets, have announced they have entered into a definitive merger agreement whereby Genex will become a new division of Mitchell. The merger follows Stone Point Capital’s (Greenwich, Conn.) acquisition of both companies earlier this year, Genex in March, Mitchell in April.
Mitchell characterize the merger as expanding its capability and resources to further its mission to assist clients by enabling better outcomes across the auto, workers’ compensation and disability claims process. By the terms of the merger, Genex will become a new division of Mitchell focused on clinical solutions, calculated to complement Mitchell’s Auto Physical Damage, Casualty and Pharmacy Solutions divisions. The leadership team of Genex, led by Peter Madeja, will remain in place at the company’s Wayne, Pa. headquarters.
Mitchell reports that Alex Sun will continue as its CEO and Peter Madeja will continue as Genex’s CEO, now a division of Mitchell. Both will form a newly created Office of the Chairman to guide the merger and will serve on the Board of Directors of the combined operation.
New and Powerful Solutions
Given Stone Point Capital’s acquisition of the companies earlier this year, some kind of overhead rationalization was inevitable, in addition to the merger reflecting ongoing consolidation in the U.S. workers’ compensation services market, where size of companies is an competitive factor, opines Stephen Applebaum, Managing Partner, Insurance Solutions Group (Chicago).“Genex services fit quite nicely into the Mitchell Medical menu and Mitchell already provides Genex with its bill review system,” Applebaum notes. “Alex Sun is an innovative and proven leader with the technology chops of a digital native who has grown the business through well selected partnerships and M&A.”
“As a result of the merger Mitchell has gained better opportunity to leverage the assets and expertise of its Auto Physical Damage division—which has been re-energized under the leadership of Debbie Day and her team—with these expanded medical/casualty assets to create new and powerful auto injury, evaluation and treatment solutions for the rapidly transforming environment triggered by the explosion in the IoT, including accident avoidance systems, autonomous vehicles and people,” Applebaum adds.
Mitchell CEO Alex Sun characterizes the joining of the companies as a natural extension of Mitchell’s strategy to further expand the value its delivers to its property/casualty insurer clients. “Through the addition of the Genex team, we are bringing together market leaders in medical compliance and cost containment and solutions focused on the injured worker and return to work,” he comments. “This is a wonderful opportunity to drive even better claims outcomes for our clients, and deliver meaningful new innovation through deeper technology and data integrations, and enhanced user experiences.”
Peter Madeja, CEO of Genex, frames the merger in terms of a simple vision of creating a full complement of best-in-class products and services. “Moreover, through our combined strength, we now have an even greater ability to simplify processes, optimize workflows, and integrate rich data sets to better serve our customers,” he says. “Collectively our companies have an over 100-year history committed to serving our valued clients. I speak for the entire dedicated Genex team when I say we very much look forward to working with Alex and the rest of the Mitchell team to fulfill our collective mission of delivering great outcomes to clients.”
“Both Mitchell and Genex remain intensely committed to our clients and existing lines of business across auto physical damage, auto casualty, workers’ compensation, pharmacy, disability and healthcare,” Sun adds. “Client focus remains our number one priority and we continue to increase our level of investment across the board. I look forward to working with our new Genex teammates to better serve our valued client partners.”