Aon has announced it is to bolster is claims management operation with the acquisition of a specialist software provider.

The broker has entered into a letter of intent to buy Valley Oak Systems of San Ramon, California, with the deal expected to be finalized by the end of the month.

It signals a major step in Aon's efforts to increase their market share of the specialist risk management sector and while the deal is seen as significant market insiders say the benefit will not be immediate as it will require time for the new acquisition to be embedded in the existing operations Valley Oak Systems (VOS) is regarded as a significant entity in the provision of claims management software, services and support for the insurance industry. Its iVOS "one-system" solution includes medical bill review, policy underwriting, case management, billing, and event management capabilities.

The aim of the deal is to enable VOS to integrate and share data seamlessly with RiskConsole, Aon's RMIS solution, which the company said will create the only end-to-end browser-based offering in the global market. The acquisition of VOS follows Aon's integration of Risk Laboratories, LLC (RiskLabs) in 2004.

"We selected Valley Oak Systems because of their exceptional reputation in the market, their dedication to serving clients, and the high caliber of talent within their organization," says Greg Case, Aon president and chief executive officer.