Broadspire was established in 2003 after Beverly Hills, Calif.-based Platinum acquired the business from Kemper Insurance Companies.

“We have invested a great deal in building Broadspire Services into one of the industry's premier providers of integrated claims and medical management services,” said Jim Levitas, senior vice president for mergers and acquisitions at Platinum, in a statement.

Tom Crawford, president and chief executive officer of Crawford, said, “We are excited about this acquisition and believe that it not only further strengthens our position in the marketplace, it also illustrates that we are fully committed to serving our clients' and brokers' needs.”

“This transaction is a huge win for both companies,” said Dennis Replogle, president and CEO of Broadspire.

Crawford said it intends to retain the Broadspire Services name and re-brand Crawford Integrated Services, its risk and health care management business unit. The entire entity will be renamed Broadspire Services Crawford Company.

During a conference call yesterday to discuss the acquisition, Mr. Crawford said the move fits in with the company's plans to become the leader in all of the markets it serves.

He said Broadspire's business mix is half casualty and half health care management.

Once completed, the acquisition will generate growth in both the short- and long term, he continued. The deal is expected to double revenue from self-insured clients with an estimated $200 million for 2006.

“By acquiring Broadspire Services we are bringing a large and profitable business into our operations,” he noted, adding that the company will rank as one of the top three TPA's offering workers' compensation services, as well as auto and general liability exposures.

For the second quarter of 2006, Crawford reported net income of $4.2 million, up 57 percent from $2.7 million for the same period last year. Revenues increased 1 percent, from $207 million to $210 million.

For the first half of the year, the company reported net income increased 100 percent, from $5 million to $10 million. Revenues increased 6 percent, from $406 million to $431 million.

Mr. Crawford said the purchase would be financed through a combination of notes and an increase in a revolving credit facility.

Shares in Crawford closed down 13 cents for the day yesterday, closing at $7.45 a share.