Accentia Technologies Ltd, a Mumbai-based business process outsourcing firm, is acquiring stake in IQ Group, a UK-based company offering communication and computing solutions for healthcare sectors.
Accentia has already entered into an agreement with IQ Group for the transaction subject to customary closing conditions. It is expected to be completed by the end of September this year. The financial details of the transaction were not disclosed.
IQ Group primarily caters healthcare industry offering services such as product development and consultancy in software, electronics and user interfaces for embedded systems. It currently has three entities that include Tactiq Ltd, Centriq Ltd and Neologiq Ltd.
While Centriq is a communication and computing solutions provider for healthcare industry in Europe and the Middle East, Tactiq is a product development consultancy specialising in software, electronics, and user interfaces for embedded systems for healthcare, automotive, defence and industrial markets. Neologiq is also the product development arm of IQ in healthcare segment, and has developed a number of products which are already in use. The company is also developing several other products, which are on the pipeline, the statement added.
Accentia believes the acquisition will help it to emerge as leader in the healthcare support services and management services for hospital IT infrastructure segment in North America, Europe and the Middle East.
Through this acquisition, the company is expecting to tap the business unleashed through the new healthcare reforms that calls for revamping of IT management and service delivery model in the hospitals. The company also plans to leverage IQ’s other subsidiary offerings to tap the emerging healthcare market in India.
Pradeep Viswambharan, managing director, Accentia Technologies, said, in the statement, “The proposed acquisition of IQ group is a transformative event for us. The synergy from the technical and computing expertise of IQ group in the healthcare sector and the strong service delivery and process outsourcing expertise of Accentia would help us capture a considerable market share of the new opportunities being opened up in the US with the new healthcare reforms in place.”
Accentia also believes the consulting expertise of Tactiq in non-healthcare areas would add a great value to its planned foray in the legal process outsourcing market through major buys in the near future, Viswambharan remarked.
Accentia Technologies currently offers medical documentation, coding, billing, e-publishing and data processing. In the last fiscal, the revenue and profit of the company were Rs 265 crore and Rs 74.5 crore, respectively.
The shares of the company were traded at Rs 226.05, up by Rs 5.75 or 2.61% at 11:20 am in the Bombay Stock Exchange. At the prevailing prices, the company has a market capitalization of Rs 330.69 crore.
Earlier, it acquired two firms in the US, two in Bangalore and one each in Kolkata, Hyderabad and Kochi. It currently has over 2,000 employees, and aims to increase the strength to 15,000 in another 2 years.