India's third-largest IT services exporter Wipro on Thursday said it has acquired Florida-based HealthPlan Services for $460 million, one of its largest acquisitions in recent times. HealthPlan Services, which offers technology solutions to healthcare insurance companies in the US, employs over 2,000 employees.
The deal is expected boost Wipro’s key levers for growth, adding to the company's cloud services portfolio. Wipro’s clients currently include over 100 US payers, health care providers and public health agencies. Privately held HealthPlan Services recorded revenues of $223 million for the calendar year 2015.
“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,” said Jeffrey Heenan Jalil, senior vice president and head, healthcare life sciences and services, Wipro Limited.
The transaction is subject to regulatory approvals and is likely to be completed in the next 60 to 90 days, the Bengaluru-based IT firm said in a statement. Wipro acquired HealthPlan Services from Water Street Healthcare Partners, a strategic investor focussed on the health care industry.