HNC to Buy CompReview in Stock Deal

A pair of Orange County entrepreneurs agreed to sell their medical billing software company to HNC Software Inc. of San Diego in an all-stock deal that could top $200 million. “We’re very excited,” said Lee Kaaren, co-founder of CompReview Inc. CompReview develops and markets software that enables insurance companies, businesses and medical billing firms to screen workers’ compensation bills for fraud and compliance with various state regulations. The deal will make Kaaren and partner Michael Munayyer 20% owners of publicly traded HNC. HNC said it will acquire privately owned CompReview for 5 million shares of stock. HNC shares closed at $42.13 in heavy Nasdaq trading, up $4.25 on word of the deal. The actual value of the acquisition will be based on HNC’s stock price when the sale closes in the fourth quarter, but it cannot fall below $130 million, said Raymond L. Thomas, HNC’s chief financial officer.