GD closes $960M Vangent acquisition
- By Nick Wakeman
- Sep 30, 2011
General Dynamics Corp. has closed its $960 million acquisition of Vangent Inc. in a move that builds out GD’s health care IT business.
The company becomes part of General Dynamics IT and creates a health care business that stretches across both civilian and defense agencies.
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“Together with General Dynamics Information Technology’s 30 years of experience in the health care IT market, this acquisition creates a Tier 1-level business that can meet the large-scale requirements of customers in markets that are receiving high priority in current funding and entitlement reform initiatives,” GD chairman and CEO Jay Johnson said in an announcement.
Vangent brings offerings that include health informatics and information exchange, electronic health records and data analytics, and business-process outsourcing solutions and systems. Customers include the Health and Human Services, Commerce, Education, Justice Labor, State, and Veterans Affairs departments and the Military Health Systems.
In the health care arena, General Dynamics IT provides systems that detect and prevent fraud, waste and abuse in health care claims. It also supports the U.S. military health system with advancements in primary patient care, virtualization, electronic health records, medical research and medical logistics. Customers include the Centers for Medicare and Medicaid Services, the Food and Drug Administration, the Centers for Disease Control and Prevention, the Veterans Affairs Department, the Air Force Medical Support Agency, the Navy Bureau of Medicine, the Army Medical Department, and the Defense Military Health System. The company also serves commercial health payers.
The cash deal was announced Aug. 16. Vangent was majority owned by Veritas Capital, a private equity group that has made several investments in the government market.
Vangent adds 7,500 employees to General Dynamics IT, bringing its total to 24,000 employees.
About the Author
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.