BENGALURU: Wipro is buying US-based insurance technology platform HealthPlan Services for $460 million (over Rs 3,000 crore), its fourth acquisition in less than six months and its biggest since the $600-million buyout of US data centre provider Infocrossing in 2007.
HealthPlan Services, founded in 1970 and headquartered in Tampa, Florida, is owned by Water Street Healthcare Partners, a private equity firm focused exclusively on the healthcare industry. Wipro will fully buy out Water Street. HealthPlan Services fills a critical gap for Wipro. Just last month, Wipro vice-chairman T K Kurien had told TOI that insurance had “been a drag from the time I took over (in February 2011) till now.” He said the company had not found a good candidate to buy.
HealthPlan Services offers technology platforms and business process as a service (BPaaS) solutions to healthcare insurance companies in the US. It calls itself the US’ largest independent provider of sales, benefits administration, retention, reform and technology solutions to the insurance and managed care industries. It had $233 million in revenue in 2015, compared to $188 million in the year before. It employs over 2,000 associates. The Patient Protection and Affordable Care Act passed by the Obama administration has dramatically altered the health insurance landscape in the US. It established insurance exchanges (marketplaces) that Americans could use to obtain affordable coverage from competing private healthcare providers.
“The partnership with HealthPlan Services positions Wipro to participate in the shift of the US health insurance industry towards a consumer-centric business model,” said Jeffrey Heenan Jalil, head of the healthcare life sciences and services business of Wipro.
Article taken from http://timesofindia.indiatimes.com/