Global software major and India’s 3rd largest exporter Wipro has made an announced buying “HealthPlan Service” business in the US for $460 million (Rs.3,150 crore). HealthPlan Services is a leading independent technology and Business Process as a Service (BPaaS) provider in the US health insurance market that offers solutions to health insurance firms. The company was founded in 1970 and currently generates annual revenue of 223 million dollars and employs over 2,000 associates. By partnering with HealthPlan, Wipro will have first-mover advantage in the high growth public and private exchange space for individual, group and ancillary markets.
In a statement Wipro company said “We have signed an agreement to acquire HealthPlan Services from Water Street Healthcare Partners, a strategic investor, for providing business process as a service in the US health insurance market.”
The transaction is aligned with Wipro’s growth levers, which are set to dominate the services market through industry utilities that multiple customers can use. This acquisition was part of the Wipro’s traditional “string of pearls” acquisition strategy and it shall help company to strengthen its position in the US health insurance market. It will help Wipro to participate in the shift of the US health insurance industry towards a customer-centric business model as it has currently has a US 800 million dollars healthcare and life sciences business.
Last year Wipro acquired three companies ranging from design companies to small tech providers in the financial sector as it seeks to get back on the growth path. With this acquisition, Wipro is looking to give its healthcare business a major fillip. This is Wipro’s overall 4th acquisition in the in calendar year 2015 . The acquisition process is likely to be completed within the next three months.