Wipro, in its fourth acquisition in less than six months, and its biggest since the $ 600 million buyout of Inocrossing in 2007, is all set to buy US-based insurance technology platform HealthPlan Services for $ 460 million.
The company fills a critical gap for Wipro. Last month, Wipro vice-chairman TK Kurien had said that insurance had “been a drag from just the time I took over in February 2011, till now.” He also said the company had not found a good candidate to buy. HealthPlan Services offers technology platforms and business process as a service (BPaaS) solutions to healthcare insurance companies in the US. It calls itself the US' largest independent provider of sales, benefits administration, retention, reform and technology solutions to the insurance and managed care industries. It had $ 233 million in revenue in 2015, compared to $ 188 million in the previous year. It employs over 2,000 associates. The Patient Protection and Affordable Care Act passed by the Obama administration has dramatically altered the health insurance landscape in the US. It established insurance exchanges (marketplaces) that Americans could use to obtain affordable coverage from competing private healthcare providers. “The partnership with HealthPlan Services positions Wipro to participate in the shift of the US health insurance industry towards a consumer-centric business model,” said Jeffrey Heenan Jalil, head of the healthcare life sciences and services business of Wipro.
“This will help us lower the cost of healthcare and transform the quality of the member experience,” he said. Jeff Bak, CEO of HealthPlan Services, said the combination of the two companies will give players the power to accelerate growth strategies while providing both BPaaS and competitive administrative service solutions.
