Health Care Deal News: Spotlight on E-Health- February 2012
RealPage (NASDAQ: RP), which provides property management software solutions for the rental housing industry, has broken into the e-Health industry, if somewhat obliquely, by acquiring Vigilan, Inc. for $5.0 million. Based in Wilsonville, Oregon, Vigilan is a provider of on-demand software and software-enabled services (SaaS) to assisted living communities. Vigilan’s solutions help residents communicate with their families and with staff. This acquisition, valued at 2.2x revenue, brings with it RP Vigilan’s client base of 340 senior living communities. It also helps the company diversify away from its core customer base of serving the rental housing market.
Automatic Data Processing (NYSE: ADP) recently acquired PhyLogic Healthcare. Based in Springfield, Massachusetts, PhyLogic is a medical billing and revenue cycle management company serving small and midsize physician medical practices. It also provides electronic health records and cloud-based practice management solutions. The revenue cycle management industry is poised to grow from $4.0 billion in 2010 to over $9.0 billion by 2018, and this acquisition allows ADP to tap into that growth. It also strengthens the buyer’s ability to service the small practice segment.
NCR Corp. (NYSE: NCR) is selling its health care solutions division to QuadraMed Corp. for an undisclosed price. The division includes NCR’s MediKiosk patient access software, its patient portal and several other self-service health care-related offerings. It is believed that this acquisition will improve the ability of QuadraMed’s clients to self-direct their health care experience at acute care facilities. The health care solutions being acquired automate and streamline routine patient interactions, resulting in improved workflow, increased revenue and an increase in patient satisfaction, so the theory goes. Based in Reston, Virginia, QuadraMed is a Francisco Partners portfolio company.
T-System, a Dallas-based provider of clinical, business and IT solutions for emergency medicine, has acquired Practice Management Associates (PMA). Located in Williamsburg, Pennsylvania, PMA is a provider of coding, billing and other revenue-cycle management services for emergency rooms and emergency room physicians. This deal enlarges the buyer’s footprint in the emergency medicine space, positioning T-System to connect upstream clinical documentation processes with downstream coding and billing.
The TriZetto Group recently acquired Medical Data Exchange, a business which supports Medicaid and Medicare plan customers that submit encounter data to more than 35 Medicaid state organizations.
To enter the e-Health space, ManTech International (NASDAQ: MANT) is buying Evolvent Technologies...Want to read more? Click here for a free trial to The Health Care M&A Monthly and download the current issue today