Selective Insurance Purchases Software Development And Service Company

Selective Insurance Group Inc. has purchased PDA Software Services Inc. (PDA), a custom software development and processing service company with 150 employees. PDA, headquartered in Overland Park, KS, generates annual revenues of approximately $13 million.

Selective says its philosophy is to make acquisitions that strengthen the technical skills it needs to support its core property and casualty insurance businesses. PDA has software development and processing services expertise that the company says compliments its technology and fee-for-service strategies. "Software sales and access fees, combined with PDA's service revenue, will help us to further diversify our revenue and income stream. Also, PDA's service expertise will benefit Selective as we expand our fee businesses," officials said. "This acquisition will have minimal impact on Selective's earnings in 1999 with significant growth potential going forward.''

Don Williams, Selective's senior vice president and chief information officer, said, "We've developed a very good working relationship with PDA over the past three years; they are customer-focused and their knowledge about the property and casualty business is extensive. We currently have joint ventures on two technology projects that will result in enhanced service for our independent agents and policyholders. PDA has helped us develop our new claim and flood insurance systems that will be released in 1999."

Dave Fuller founded PDA in 1976. The company has grown from a one person software development firm to a business that services a broad range of public and private sector customers. In addition to developing software for Selective and other insurers, PDA provides processing services to 14 states that participate in the federal "Womens', Infants' and Childrens"' nutritional program. PDA also provides processing services for several other private sector organizations.

Fuller, Tom McCarthy and Niels Mortensen head PDA's senior management team. Selective says PDA will continue to function as a separate operation within the company, headed by the current management team. PDA has offices in Mechanicsburg, PA; Marietta, GA, Lenexa, KS, and Indianapolis, IN, in addition to the Overland Park, KS headquarters.