Sedgwick to Acquire York: The Race to Scale in the US TPA Industry Intensifies

10 Jul 2019
by Skand Bhargava, Somya Bhadola, Akanksha Sohil

On July 8, 2019, Sedgwick, a leading US-based TPA, announced it plans to acquire another US-based risk and claims management TPA services provider, York Risk Services Group. The planned acquisition will have significant repercussions on the TPA competitive landscape, as both Sedgwick and York are among the top five TPAs in the US market. The deal, when complete, will make Sedgwick a de-facto leader in the TPA market, not only in the US but on a global level as well. The complementary specialist capabilities that York brings would enable Sedgwick to provide holistic solutions to clients and potentially brightens the prospects for its future organic growth.

However, given the number of acquisitions that Sedgwick has made in the past 12-15 months, it is essential that it pays attention to key issues in this integration to ensure it realizes the intended benefits. This viewpoint analyses the acquisition, identifying the key drivers behind the development, integration considerations, its implications on TPA industry stakeholders, and Everest Group’s views on the future direction of the TPA industry as consolidation in the market continues.

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