With an aim to strengthen its position in the US health insurance market, India’s third-largest information technology services exporter, Wipro, on Thursday said it will acquire US-based HealthPlan Services for $460 million (about Rs 3,200 crore).
Wipro said it signed a definitive agreement to fully acquire Tampa, Florida-headquartered company from Water Street Healthcare Partners, a strategic investor focused exclusively on the health care industry.
HealthPlan Services offers technology platforms, and a fully-integrated Business Process as a Service (BPaaS) solution to health insurance companies in the individual, group and ancillary markets, and employs over 2,000 associates.
It connects its payer clients to over 40 public exchanges and over 150 private exchanges in the US.
As part of the agreement, Wipro will acquire 100% of HealthPlan Services’ shares for a purchase consideration of $460 million, Wipro said in a statement.
“The addition of HealthPlan Services’ capabilities complements Wipro’s strengths in claims processing and back office services. This is a strategic move for us, as it advances Wipro’s vision of leveraging unique insights into customer-buying behaviour and applying this across the healthcare value chain. This will help us lower the cost of healthcare and transform the quality of the member experience,” said Jeffrey Heenan Jalil, senior vice-president and head, healthcare life sciences and services, Wipro.
This transaction is subject to customary closing conditions and regulatory approvals and is likely to be completed in next 60 to 90 days, the Bengaluru-based IT major said.
This is Wipro’s third acquisition in the current fiscal year.
In December 2015, Wipro announced acquisition of German IT solutions and services company Cellent AG for 73.5 million euros (around Rs 520 crore when announced), a deal that will add 800 people to Wipro’s strength. In the same month, Wipro also announced its plans to acquire 400-people strong and US-based Viteos Group, a BPaaS provider for the Alternative Investment Management Industry for $130 million. Both the deals are expected to be closed by March 31, 2016.