Nasdaq-listed IT services major Cognizant will acquire US-based Bolder Healthcare Solutions for an undisclosed amount.
Louisville, Kentucky-based Bolder Healthcare Solutions provides revenue cycle management solutions to hospitals and specialist healthcare organisations in the US.
Bolder Healthcare’s revenue cycle management offerings will expand Cognizant’s healthcare consulting, information technology and business process services across healthcare value chain, the IT services firm said in a statement.
The transaction is expected to close in the second quarter of 2018.
"As the healthcare industry continues to undergo a transformation to a value-based care model, digital revenue cycle management services and solutions remove complexity and allow providers to streamline their operations," said Kaushik Bhaumik, executive vice president and global head of healthcare at Cognizant.
Michael Shea, CEO of Bolder Healthcare Solutions, said hospitals and physician providers require a specialised revenue cycle management approach to maximise cash flow, lower costs, enhance financial performance and ensure regulatory compliance demands are met.
Joining forces with Cognizant will help Bolder Healthcare to have many tools that will be catalysts for future growth, Shea said.
The investors in Bolder Healthcare Solutions include London-listed fund JZ Capital Partners Ltd and Chicago-based private equity firm The Edgewater Funds.
In a separate statement, JZ Capital Partners said it will realise around $108 million in proceeds from the sale. However, it didn’t disclose more details.
Recent deals by Cognizant
In June 2017, Cognizant had agreed to acquire Health Care Service Corporation’s subsidiary TMG Health for an undisclosed amount. Cognizant said the acquisition will strengthen its business process-as-a-service offering for the government and public health programme markets.
In October 2017, it had agreed to acquire London-based full-service digital agency Zone for an undisclosed amount.
In the same month, Cognizant acquired Zurich-based digital marketing firm Netcentric for an undisclosed amount.