Wipro to acquire HealthPlan Services

The former to buy 100 per cent of HealthPlan Services’ shares for a purchase consideration of $460 million, transaction is likely to be completed in next 60 to 90 days

Wipro has signed a definitive agreement to acquire HealthPlan Services from Water Street Healthcare Partners, a strategic investor focused exclusively on the healthcare industry. As part of the agreement, Wipro will acquire 100 per cent of HealthPlan Services’ shares for a purchase consideration of $460 million.

“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. The addition of HealthPlan Services’ capabilities complements Wipro’s strengths in claims processing and back office services. This is a strategic move for us, as it advances Wipro’s vision of leveraging unique insights into customer buying behavior and applying this across the healthcare value chain. This will help us lower the cost of healthcare and transform the quality of the member experience,” said Jeffrey Heenan Jalil, Senior VP & Head- Healthcare Life Sciences and Services, Wipro.

“We welcome the HealthPlan Services team to the Wipro family. Over the past eighteen months we have transformed our BPS business into a platform-led BPaaS business with a strong focus on the healthcare services market. This transaction will help us become the leader in administrative service in the US health insurance industry. The partnership with HealthPlan Services also reinforces our commitment to the US market by creating jobs and value within the US economy,” said Nagendra Bandaru, Senior VP and Head – Business Process Services, Wipro.

“We are excited about what Wipro and HealthPlan Services can accomplish together for our customers and employees. The combination creates the first true end-to-end solution in the individual under 65 commercial market and the governmental over 65 and Medicaid markets. Together, Wipro and HealthPlan Services will give payers the power to accelerate growth strategies while providing both Business Platform as a Service (BPaaS) and competitive administrative service solutions,” said Jeff Bak, CEO and President of HealthPlan Services.

This transaction is subject to customary closing conditions and regulatory approvals and is likely to be completed in next 60 to 90 days.