MERGERS & ACQUISITIONS
SAIC makes $500M health IT buy
- By Nick Wakeman
- Jul 17, 2012
Science Applications International Corp. will pay $493 million to buy maxIT Healthcare Holdings, a provider of IT consulting services to hospitals and other health care organizations.
The acquisition builds on SAIC acquisition in 2011 of Vitalize Consulting Solutions, which also provides health IT consulting. Services include IT strategy and planning, electronic health record implementation and optimization and management consulting, SAIC said in a statement.
Part of the services maxIT provides help hospitals and other health care delivery organizations comply with meaningful use requirements needed to receive incentive payments from the federal government for implementing electronic health records, the company said.
While maxIT of Westfield, Ind., is primarily a player in the commercial hospital market, SAIC sees an opportunity to bring those commercial practices to its federal health care IT customers, the company said.
“As both commercial and federal health care providers begin to fully extract value from their [electronic health record] solutions, SAIC is well positioned to leverage its service offerings in systems integration and interoperability, health sciences and advanced data analytics to assist providers in realizing the promise of personalization in delivering value-based health care,” the company said.
maxIT’s 1,300 employees will join the SAIC health solutions business led by Steve Comber. The health solutions business is part of SAIC’s health, energy and civil solutions group, led by Joe Craver.
“Combined with our acquisition of VCS, this deal enhances SAIC’s capabilities to address the nation’s challenge of rising health care costs, access to quality care, and the need to improve patient outcomes,” Carver said.
The acquisition is expected to close in August. SAIC is paying $473 million in cash at closing. Another $20 million will be paid in maxIT shareholders after receipt of certain tax refunds after the closing.
SAIC is ranked No. 4 on Washington Technology’s 2012 Top 100 list
of the largest government contractors.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.