IKS Health acquires US-based AQuity Solutions for Rs 1,600 crore

Healthcare platform IKS Health, backed by the Jhunjhunwala family, has acquired US-based tech solution firm AQuity Solutions, as a wholly owned subsidiary for US$ 200 million (Rs 1,600 crore).

AQuity Solutions is a leading tech-enabled clinical documentation, medical coding and revenue integrity solutions provider in the healthcare domain while IKS Health primarily provides administrative, clinical and operational services to clinicians.

The combined company is forecast to have an annual revenue of over US$330 million (Rs 2748 crore), as well as a global workforce of over 14,000 employees serving over 150,000 clinicians in many of the largest hospitals, health systems and specialty groups in the United States.

Speaking on the acquisition, Sachin K. Gupta, Founder and chief executive officer (CEO) of IKS Health said that delivering better, safer care is everyone’s top priority, but too often the ‘çhores’ of healthcare get in the way of that core purpose.

“To help turn the tide amidst this state of crisis, we firmly believe that revitalising clinician-patient relationships and helping our partners to thrive financially are both fundamental,” he added.

Gupta said that around $120 million (Rs 1,000 crore) out of the US$ 200 million acquisition cost will be raised by bank loans from a consortium of SMBC Bank, Citi Bank and JP Morgan, whereas the remaining cost of around $80 million (Rs 600 crore) will be covered by internal accruals.

“By combining our capabilities we will accelerate our commitment to delivering meaningful, pragmatic and proven solutions, so that patients have a better experience and practices, groups and hospitals thrive”, Kashyap Joshi, CEO, AQuity said on the acquisition.

IKS Health is looking at a combined Total Addressable Market (TAM) of around US$ 195 billion across pre-acute and acute care markets, according to a company communication. The company also expects to recruit 50,000 more resources within the next three years, the addition being over and above the current combined strength of 14,000 employees.