First Financial Management Corporation Acquires Employee Benefit Plans, Inc. for $125 Million

Strategic Insights -

First Financial Management Corporation (NYSE: FFM), a worldwide leader in information services, has announced a definitive agreement to acquire Employee Benefit Plans, Inc. (NYSE: EBP) for approximately $125 million. The transaction, subject to approval by EBP shareholders and certain regulatory agencies, will see EBP shareholders receive 0.1975 shares of FFMC common stock for each share of EBP common stock. Employee Benefit Plans, Inc. is a leading integrated managed care company with over 2,300 employer clients nationwide, providing managed health care products and services to employers and other organizations in the United States.

Key Takeaways:

  • The acquisition of EBP reinforces and expands FFMC's leading position in the employee benefits area, with EBP's revenues for the year ended December 31, 1994, totaling $237.1 million and net income of $10.8 million.
  • The transaction significantly increases FFMC's critical mass in the health care services industry, with the utilization of the company's new software processing platform expected to drive growth and value.
  • FFMC offers a vertically integrated set of data processing, storage, and management products, including health care claims processing, debt collection, and accounts receivable management.
  • The acquisition marks a major expansion of FFMC's services, with EBP's expertise in managed care products and services complementing FFMC's existing offerings.
  • FFMC is a worldwide leader in information services, with a presence on the New York Stock Exchange under the symbol FFM.

Statistics:

  • $125 million: approximate consideration for the acquisition of EBP
  • 0.1975: shares of FFMC common stock to be received by EBP shareholders for each share of EBP common stock
  • $14.70: per-share value of EBP stock based on recent FFMC share value
  • $237.1 million: revenues for EBP for the year ended December 31, 1994
  • $10.8 million: net income for EBP for the year ended December 31, 1994
  • 2,300: employer clients served by EBP nationwide
  • 1994: year in which EBP's revenues and net income were reported

Sources:

  • First Financial Management Corporation (NYSE: FFM)
  • Employee Benefit Plans, Inc. (NYSE: EBP)
  • AT002 -- 6551 05/15/95 08:37 EDT (PRNewswire)