Cover-All Expands Into the BI Market With Purchase of Moore Stephens

Cover-All Technologies Inc. has announced the acquisition of Moore Stephens Business Solutions, a provider of business intelligence and advanced analytics solutions to the insurance industry.

Acquisition highlights include:

• Cover-All has acquired substantially all of MSBS’s assets (excluding working capital) for an aggregate purchase price of $2,450,000, with no assumed indebtedness.
• Approximately 96 percent of the purchase price consists of cash and a promissory note, and the remaining approximately four percent consists of Cover-All’s common stock.
• The acquired business is expected to be immediately accretive to Cover-All’s 2010 earnings with an operating margin comparable with Cover-All’s historic operating margin.
• On a trailing 12-months basis, MSBS generated more than $6 million in revenue.
• The combined organization will total more than 55 customers, all of which are part of the same target market.
• Seth Rachlin, currently CEO of MSBS, will join Cover-All’s management as an executive vice president and serve as managing director of Cover-All’s new business intelligence unit. The unit, including the staff of MSBS, will continue to be based in the New York City office.

(For more on Cover-All, click here for a case study with AIX Group. And for more on Moore Stephens, read here about a BI implementation with Scottsdale Insurance.)