The deal adds another platform-led Business Process as a Service (BPaaS) offerings to Wipro’s services portfolio.
Wipro Ltd., a leading global information technology, consulting and business process services company, has acquired HealthPlan Services from Water Street Healthcare Partners, a strategic investor focused exclusively on the health care industry.
Under the agreement, Wipro will acquire 100% of HealthPlan Services’ shares for a purchase consideration of USD 460 million.
By acquiring HealthPlan Services, Wipro gains the competitive, first-mover advantage in the high growth public and private exchange space for individual, group and ancillary markets. In addition, it also strengthens Wipro’s payer portfolio, with access to HealthPlan Services’ payer clientele.
The deal is closely aligned with Wipro’s key levers for growth, and adds another platform-led Business Process as a Service (BPaaS) offerings to Wipro’s services portfolio. Wipro’s clients currently include over 100 leading healthcare providers and public health agencies in the United States.
Founded in 1970 and based in Tampa, Florida, HealthPlan Services is a leading technology and Business Process as a Service (BPaaS) provider in the US health insurance market. Healthpan Services is the largest independent provider of sales, benefits administration, retention, and technology solutions to the health insurance and managed care industries. HealthPan employs over 2,000 associates, and offers market-leading technology platforms and a fully integrated Business Process as a Service (BPaaS) solution to Health Insurance companies (Payers) in the individual, group and ancillary markets. Chicago-based Water Street is a strategic investor focused exclusively on health care industry.
Jeffrey Heenan Jalil, Senior Vice President & Head – Healthcare Life Sciences and Services, Wipro Limited, said in a statement:
“The partnership with HealthPlan Services positions Wipro to participate in the shift of the US health insurance industry towards a consumer-centric business model. HealthPlan Services strengthens Wipro’s position in the health insurance exchange market while offering synergies with Wipro’s presence in the Managed Medicare and Commercial Group Insurance markets. 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 behavior 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.”
The deal, which is subject to customary closing conditions and regulatory approvals, is expected to close in 60 to 90 days.
Headquartered in Bangalore, India, Wipro Ltd. is an Indian multinational IT consulting, system integration, and business process services company that delivers solutions to enable its clients do business better. Wipro is one of India’s largest publicly traded companies and also the seventh largest IT services in the world.