A US subsidiary of business process management company Hinduja Global Solutions Ltd has agreed to acquire population health management company AxisPoint Health for $14 million in an all-cash deal.
HGS Population Health LLC, USA, seeks to expand its footprint in the $3-billion clinical services market through the acquisition of CMH Services Subsidiary LLC, USA, the holding company of AxisPoint Health, the company said, adding that the transaction is expected to close within the next 15 days.
Hinduja Global, which is part of the multi-billion dollar conglomerate Hinduja Group, said the transaction will also help the company gain access to over 20 new clients across the US.
Bengaluru-headquartered Hinduja Global, which employs 46,000 people across seven countries, had posted revenue of Rs 3,711 crore ($ 555 million) in 2016-17. Its healthcare business contributes about 48% to its overall revenue.
AxisPoint offers care management, nurse advice line and analytics services, under the CarePoint, GuidePoint and Analytix brands. The company’s employee count stands at 400, including 280-plus US-registered nurses.
However, in recent years, AxisPoint’s revenue has declined from $87 million in 2015 to $60 million in 2017, according to stock exchange filings.
“The population health management segment is an attractive market, with healthcare players looking to simplify and personalise the care experience, while reducing costs and improving health outcomes. HGS already has a significant presence in the US healthcare market, and we see a lot of synergies with AxisPoint Health’s portfolio of services,” Ramesh Gopalan, president, global healthcare and head of India business at HGS, said in a statement.
According to a Hinduja Global spokesperson, private equity firm Comvest Partners was looking to exit its investment in AxisPoint. Hence, Hinduja Global may pick up the loss-making company at an attractive valuation and plans to turn it around, he added.
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