<article>IT firm <a style="color: #000080;" href="https://www.cognizant.com/" target="_blank" rel="noopener noreferrer">Cognizant </a>on Tuesday announced that it has entered into a definitive agreement to purchase<a style="color: #000080;" href="http://www.hcsc.com/" target="_blank" rel="noopener noreferrer"> Health Care Service Corporation&#8217;s </a>(HCSC) subsidiary<a style="color: #000080;" href="https://www.tmghealth.com/" target="_blank" rel="noopener noreferrer"> TMG Health</a>.</article>

IT firm <a style="color: #000080;" href="https://www.cognizant.com/" target="_blank" rel="noopener noreferrer">Cognizant </a>on Tuesday announced that it has entered into a definitive agreement to purchase<a style="color: #000080;" href="http://www.hcsc.com/" target="_blank" rel="noopener noreferrer"> Health Care Service Corporation&#8217;s </a>(HCSC) subsidiary<a style="color: #000080;" href="https://www.tmghealth.com/" target="_blank" rel="noopener noreferrer"> TMG Health</a>.
Financial details of the deal were, however, not disclosed.
As part of the deal, TMG Health will enter into a new, expanded multi-year service agreement to continue providing information technology, business process and other services to HCSC&#8217;s various operating units and subsidiaries, cognizant said in a statement.
Building on Cognizant&#8217;s 2014 acquisition of healthcare technology provider <a style="color: #000080;" href="http://www.trizetto.com/" target="_blank" rel="noopener noreferrer">TriZetto</a>, the addition of TMG Health will extend Cognizant&#8217;s market leadership and expand the breadth of its digital transformation solutions for healthcare payers and providers, the statement added.
&#8220;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,” said Susan Rawlings Molina, President and CEO of TMG Health.
The transaction is expected to close in the third quarter of 2017, subject to satisfaction of the closing conditions, including regulatory reviews. TMG Health&#8217;s healthcare business and technology professionals will become employees of Cognizant upon the close of the transaction, the statement said.
TMG Health, an HCSC subsidiary since 2008 with offices in Pennsylvania and Texas, is a provider of business process services to the Medicare Advantage, Medicare Part D and Managed Medicaid markets in the U.S., and claims to support 32 client plans and more than 4.3 million members in all 50 states.
The combination of capabilities from TMG Health, Cognizant&#8217;s Digital Operations, and Digital Systems and Technology practices will further strengthen Cognizant&#8217;s scalable business process-as-a-service (BPaaS) solution for the government and public health program markets, the company said.
&#8220;Cognizant&#8217;s TriZetto Facets and QNXT healthcare claims and administration software and systems process more than 30 percent of the nation&#8217;s managed Medicare lives and over 60 percent of the nation&#8217;s managed Medicaid lives,&#8221; said Kaushik Bhaumik, Executive Vice President and global head of healthcare at Cognizant.
&#8220;The addition of TMG Health&#8217;s capabilities and experts to our healthcare portfolio will enable all of our payer clients to embrace new digital opportunities with their growing government business lines, be more competitive and respond quickly to changes in these critical markets with increased efficiency from member enrollment through care management, under a predictable, cost-effective BPaaS model,” he added.
Also Read: <a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/india-cognizant-to-acquire-mirabeau-bv-59520/" target="_blank" rel="noopener noreferrer">India: Striking 4th deal in 2016, Cognizant to buy Dutch Mirabeau</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/54647-54647/" target="_blank" rel="noopener noreferrer">India: Cognizant to buy Norwegian firm Frontica for $128m</a>

India: Cognizant acquires US-based HCSC's subsidiary TMG Health

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

India: Cognizant acquires US-based HCSC's subsidiary TMG Health

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief