ISO makes formal merger proposal to NCCI.

National Underwriter Property & Casualty-Risk & Benefits Management, March, 1998 by Hays, Daniel

The Insurance Services Office Inc. has made a formal proposal for the acquisition of the National Council on Compensation Insurance. Details of the offer by the New York-based ISO for the NCCI in Boca Raton, Fla., were outlined in a letter to NCCI's members by NCCI Chair Thomas A. Hayes.

No dollar figure was mentioned, but normally the price of such a transaction would involve a multiple of revenue, according to someone on the NCCI merger study committee--Tom Staudt, president and chief executive officer of MedE America, an NCCI member company based in 7East Meadow, N.Y. NCCI last year had $142.5 million in revenue. In a "status report," Mr. Hayes said the merger proposal called for ISO "to acquire NCCI as a not-for-profit subsidiary with a focus on...

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