04 December 2009
Published in: Risk governance, Software
Watson Wyatt to sell off VIPitech
The European Commission has cleared Towers Perrin and Watson Wyatt to proceed with their merger -- US anti-trust authorities had previously cleared the transaction -- but as part of the decision Watson Wyatt has committed to sell its life insurance actuarial software business, VIPitech.
The EC has agreed that the merged company, to be called Towers Watson, may retain a licence to use the VIPitech software, allowing it to continue to serve clients that have implemented the software. Watson Wyatt is at present preparing the business for sale and will be issuing more information in due course.
VIPitech has pluses and minuses for a purchaser. "It's reckoned to be by far the best product out there because it's the newest," one software executive said. "The disadvantage is it has the smallest client base."
"While we are disappointed that we could not retain VIPitech, we are committed to ensuring that VIPitech is sold as a viable business and that all of our VIPitech clients remain fully supported," said John Haley, Watson Wyatt CEO who will serve as CEO of Towers Watson. "We are very pleased to have received clearance from the Commission on a timescale which will allow the companies to continue plans to finalize the merger by the end of this year."
Shareholder meetings of Towers Perrin and Watson Wyatt are scheduled for 18 December 2009. If all the requisite shareholder approvals are obtained and all other conditions are satisfied, the merger should become effective on 1 January 2010.
See also: IERM, Software, 16 November, EU examines Towers Perrin/Watson Wyatt merger