Cognizant Technology Solutions to acquire TMG Health
US-based technology company Cognizant Technology Solutions, has announced that it will acquire TMG Health, a subsidiary business of Health Care Service Corporation. As part of the acquisition deal, Cognizant has agreed to let TMG Health continue to service Health Care Service Corporation’s various operating units and subsidiaries on a new, expanded, multiyear services agreement that will include IT support, business processes support, and more. This is not Cognizant’s first foray into the world of healthcare – in 2014, it purchased healthcare technology provider TriZetto – and it will be looking to capitalize on a lucrative market.
Cognizant’s share price has risen by 20% year-to-date
SOURCE: Yahoo Finance
TMG Health is a provider of business services to Medicare Advantage, Medicare Part D and managed Medicaid markets in the US. It supports 32 client plans with more than 4.3 million members across fifty states. It also has over 1,900 associates, according to its website.
So this is a big acquisition for Cognizant, and will help it push further into a market it entered with its 2014 acquisition of TriZetto. Cognizant will be hoping that it can expand the breadth of its digital transformation solutions “for healthcare payers and providers,” according to a statement.
The acquisition is expected to close in the third quarter of 2017, and no financial details have been released. Susan Rawlings Molina, president and CEO at TMG Health, said:
“Cognizant and TMG Health are an ideal strategic fit because we share similar priorities and values when it comes to helping clients deliver superior member-centric care, enable efficient claims processing and efficiently meet state and federal regulatory requirements. Government business lines are expanding, and more payers, big and small, are entering the market. We believe there is a growing opportunity for our experienced teams to work together to help current and future clients succeed in highly regulated, cost- and compliance-driven markets.”
Dominion holds Cognizant in its Global Trends Managed Fund.
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