HealthSmart Holdings Inc., announced today that it has entered into a definitive agreement to acquire Klais & Company Inc., an Akron, Ohio based benefits administrator specializing in healthcare solutions for the employer and student health populations. Terms of the transaction, which is expected to be completed in May 2013, were not disclosed.
HealthSmart will acquire the operating assets and related liabilities of Klais & Company, Inc. As part of the transaction, HealthSmart will add approximately 70 Klais & Company employees and maintain offices in the Akron, Ohio area. Following the acquisition, HealthSmart will have annual revenues of approximately $190 million and close to 1,400 employees.
Nancy Archibald, President of Klais & Company, said “Klais & Company will continue to bring administrative and student health solutions to customers, using HealthSmart’s broad networks and operational capabilities. We are excited about leveraging the Klais team’s strengths and talents with HealthSmart’s 40+ year track record of excellence.”
“During the past two years, HealthSmart has acquired seven other third party administrators,” said Daniel D. Crowley, Chairman of HealthSmart. “We are very focused on creating economies of scale that allow us to provide our clients with high quality solutions at the best possible value. Our size, geographic coverage and high quality integrated managed care offerings make it possible for HealthSmart to meet the health benefit needs of self-funded employer groups, student health plans and more.”
Jim Pennington, President of HealthSmart, said, “This acquisition fuels our growth strategy, especially in our Eastern Region. In addition, it will further diversify our product and service offerings to now include student health solutions. Both HealthSmart and Klais have customer-centric cultures and strive for excellence on a daily basis. We welcome the employees, clients, and students of Klais & Company to HealthSmart.”
About HealthSmart For more than 40 years, HealthSmart has offered a wide array of customizable and scalable healthcare administrative solutions. It specializes in self-funded insurance solutions and comprehensive wellness programs for employers through its broker distribution network. The company’s headquarters is in Irving, Texas, with regional hubs throughout the country. HealthSmart’s mission is to improve member health and reduce healthcare costs.
About Klais & Company Klais & Company, Inc. was founded in 1978 by Daniel Klais and is located in Akron, Ohio. As a Third Party Administrator (TPA), it was originally focused on the administration of traditional employer-sponsored, self-funded group health plans. As the business developed, it gained a core competency around administration of student health plans, servicing both fully-insured and self-funded markets. A vast majority of Klais’ revenues are derived from the student sector, with more than 150,000 students in Klais programs. The remaining revenues are generated from commercial self-funded health plans.
