Press Release: Hearst Corporation to Acquire 80% Stake in Kubra Data Transfer
NEW YORK & MISSISSAUGA, ONT., September 3, 2014 Hearst Corporation today announced the acquisition of an 80 percent stake in KUBRA Data Transfer Ltd., a leading provider of digital bill delivery and payment services with offices across North America. The investment puts Hearst in a leading position to provide services to a wide range of clients in the utility, insurance, financial services, healthcare and government industries. Hearst Corporation President & CEO Steven R. Swartz and KUBRA President & CEO Rick Watkin made the joint announcement. Financial terms were not disclosed.
KUBRA manages solutions for more than 500 clients, interacting with 50 million customer relationships with more than $350 billion in annual payments. It serves three of the five largest U.S. utility companies and two of the top 10 insurance companies. Founded in 1992, the company is actively focused on developing additional industry segments such as major property and casualty insurance providers, and state and local governments. KUBRA will operate as an independent unit of Hearst Magazines, and will work closely with CDS Global, another independent Hearst company, based in Des Moines, Iowa. For 40 years, CDS Global has been a leading provider of end-to-end business process outsourcing for more than 1,100 marquee brands across industries, including media, nonprofits and consumer products. Watkin will report to Hearst Magazines President David Carey.
"As the consumer shift to electronic payment becomes more rapid, companies offering fully integrated billing and payment services are in high demand," Swartz says. "KUBRA is poised for major growth with its strong presence in the utility, insurance, government, financial services and healthcare industries. After exhaustive industry research, we believe KUBRA¹s unparalleled technology is extremely well positioned to positively influence the shift from paper to digital interactions."
"The outsourced integrated bill payment and presentment services marketplace continues to see major growth, with companies spending over $6 billion per year with third-party providers," Watkin says. "We look forward to working with Hearst to continue to grow our businesses. The strength of our technology, the voluminous amount of data that we process, provides KUBRA a unique opportunity to leverage the intelligence of the data in order to deliver rich and meaningful customer interactions for all our clients."