India’s Wipro Pursues U.S. Insurance Market, Inks Deal with HealthPlan Services
Wipro Limited (NYSE: WIT), a global information technology, consulting and outsourcing company headquartered in Bangalore, India, is acquiring HealthPlan Services from strategic investor Water Street Health Care Partners. The deal is expected to help Wipro become a leader in health care administrative service in the U.S.
Wipro is acquiring Tampa, Florida-based HealthPlan Services’ shares for $460 million. HealthPlan Services offers technology platform services to insurance companies and partnered with Water Street in 2008 to become the leading independent tech provider in the U.S. health care insurance market. Through its Business Process as a Service (BPaaS) model, HealthCare also offers cloud delivery services.
The acquisition of HealthPlan aligns with Wipro’s plans for growth, which includes engaging in the shift in the U.S. health insurance industry towards a consumer-centric business model, says the company. The transaction is expected to close during the second quarter.
The Affordable Care Act has resulted in professionals increasingly seeking new technology to help manage finances and organize patient data, which has birthed more acquisitions in the industry. Examples of this can be seen with Chicago-based private equity firm’s Thoma Bravo's September purchase of Emeryville, California-based MedeAnalytics Inc.and LLR Partners’ October 2014 deal for a $30 million stake in New York healthcare data management and electronic payment services company Phreesia Payment Services.