- Cognizant to buy Health Care Service Corporation's subsidiary TMG Health
- It will strengthen Cognizant's offerings in the health space
- While, Wipro invested in management and IT consulting firm Drivestream
IT Services firms Cognizant and Wipro announced acquisition of a BPO services provider and an IT consulting firm respectively on Tuesday. Cognizant said it will purchase Health Care Service Corporation's (HCSC) subsidiary TMG Health for an undisclosed amount. The transaction will strengthen Cognizant's offerings in the government and public health space.
"TMG Health will (now) enter into a new, expanded multi-year service agreement to continue providing IT, business process and other services to HCSC's various operating units and subsidiaries," Cognizant said in a statement.
The transaction is expected to close in the third quarter of 2017, it added.
No financial details were disclosed. TMG Health, an HCSC subsidiary since 2008, has offices in Pennsylvania and Texas. It is a provider of BPO services to various medical support programmes in the US.
"Government business lines are expanding, and more payers, big and small, are entering the market. We believe there is a growing opportunity," TMG Health President and CEO Susan Rawlings Molina said.
The cash consideration will see Wipro acquiring 19,679 preferred stocks and 27,865 common stocks, Wipro said in a BSE filing.
Wipro now holds 26.1 per cent share in Drivestream (on a fully diluted basis), it added.
Established in 2001, Drivestream is privately held and has a workforce of around 73 employees in the US. Its revenue stood at $20.5 million in 2016.
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