Hewitt Acquires Employee Absence Management Company LCG
LINCOLNSHIRE, Ill. â€" Hewitt Associates, a global human resources services company, today announced it is expanding its suite of HR outsourcing solutions through the acquisition of LCG and its wholly-owned subsidiary, Disability Management Alternatives, LLC, a recognized expert in employee absence management. Under the terms of the agreement, Hewitt will acquire LCG, which provides an array of integrated disability, leave and absence management solutions for mid- to large-sized employers.
"The acquisition of LCG adds another critical capability to Hewitt's complement of HR solutions designed to help our clients meet an ever-growing set of complex people challenges," said Russ Fradin, Hewitt's chairman and chief executive officer. "This acquisition is a further demonstration of our focused strategy to continue building out our HR capabilities and enhancing our existing offers through strategic acquisitions."
LCG has been a leader in employee absence management for more than 15 years, providing a full complement of absence-related services to large, complex organizations. With solutions including administration and management of all forms of absence, Web-based data integration and reporting, root cause analysis, and innovative return-to-work programs, LCG's approach identifies and addresses the fundamental causes of unplanned absence to help employers better manage costs and maintain compliance. The combination of Hewitt's rich health plan usage data and expertise in absence management consulting, coupled with LCG's absence and clinical information, will allow Hewitt to identify the unique patterns linking health and absenteeism that, when addressed proactively, can lead to improved workforce productivity.
"LCG has some of the most advanced technology and analytics capabilities in the industry," said Jay Rising, president of Hewitt's HR outsourcing business. "Hewitt's deep HR domain knowledge and 30-plus years of outsourcing experience, matched with LCG's technical, clinical and delivery expertise, creates the most comprehensive absence management solution in the field. Together, with Hewitt's existing leave administration business and LCG's comprehensive absence management services, we will serve nearly 60 clients and more than 2.3 million people."
"Joining with Hewitt brings together two organizations uniquely positioned to develop industry-leading, integrated solutions for organizations that want to understand and manage the connection between employee health and productivity," said Dick Lewis, president of LCG. "We are excited to become part of Hewitt, whose resources and expertise will help us to bring to market new solutions in this emerging field and provide another important way for companies to get the most out of their human capital."
Financial terms of the agreement were not disclosed. The transaction is expected to close in the next few months.
About Hewitt Associates For more than 65 years, Hewitt Associates (NYSE: HEW) has provided clients with best-in-class human resources consulting and outsourcing services. Hewitt consults with more than 3,000 large and mid-size companies around the globe to develop and implement HR business strategies covering retirement, financial and health management; compensation and total rewards; and performance, talent and change management. As a market leader in benefits administration, Hewitt delivers health care and retirement programs to millions of participants and retirees, on behalf of more than 300 organizations worldwide. In addition, more than 30 clients rely on Hewitt to provide a broader range of human resources business process outsourcing services to nearly a million client employees. Located in 33 countries, Hewitt employs approximately 23,000 associates. For more information, please visit www.hewitt.com.