Sedgwick Claims Management Services Inc said KKR & Co LLP (KKR.N) and company management would buy the provider of claims services for $2.4 billion, the latest in a wave of private-equity activity in the growing industry.
A rising number of claims has attracted private equity interest in the sector over the last two years.
KKR's deal to buy Sedgwick from private equity firms Stone Point and Hellman & Friedman is its second in the industry in recent months.
KKR said in September it would acquire car and property claims software company Mitchell International Inc from Los-Angeles buyout firm Aurora Capital.
That deal was valued at $1.1 billion, according to a person familiar with the matter.
Apax Partners LLP agreed in October to buy One Call Care Management Inc, a medical cost containment services company, and Align Networks Inc, a provider of workers' compensation physical medicine programs, in deals that had a combined value of about $3 billion.
Founded in 1969, Memphis-based Sedgwick is a major provider of claims processing services, specializing in workers' compensation, disability, automobile, warranty, credit card and healthcare claims.
Sedgwick last changed ownership in May 2010, when Stone Point and Hellman & Friedman, together with the company's management, acquired it from Fidelity National Financial Inc (FNF.N), Thomas H. Lee Partners LP, Evercore Capital Partners and other minority shareholders.
Reuters reported in December that Sedgwick was exploring a sale.
Sedgwick said the deal was expected to close in the first quarter of 2014.
(Reporting By Neha Dimri and Aman Shah in Bangalore; Editing by Saumyadeb Chakrabarty)