Healthcare platform IKS Health, with backing from the Jhunjhunwala family, has successfully acquired US-based tech solution firm AQuity Solutions, establishing it as a wholly-owned subsidiary in a substantial deal worth US$200 million (Rs 1,600 crore).
AQuity Solutions stands as a prominent tech-enabled provider of clinical documentation, medical coding, and revenue integrity solutions in the healthcare sector. In contrast, IKS Health specializes in delivering administrative, clinical, and operational services to clinicians.
The amalgamation of these two companies is projected to yield an impressive annual revenue of over US$330 million (Rs 2,748 crore). Additionally, the united entity will command a global workforce exceeding 14,000 employees, serving a vast network of over 150,000 clinicians, operating within some of the most extensive hospitals, health systems, and specialty groups in the United States.
Commenting on this significant acquisition, Sachin K. Gupta, the Founder and CEO of IKS Health, emphasized the shared commitment to prioritizing the delivery of better and safer care. He noted that the challenges within the healthcare system often hinder this core objective. Gupta believes that revitalizing clinician-patient relationships and supporting partners in achieving financial success are essential in addressing the current healthcare crisis.
Gupta disclosed that approximately $120 million (Rs 1,000 crore) of the $200 million acquisition cost will be secured through bank loans from a consortium consisting of SMBC Bank, Citi Bank, and JP Morgan. The remaining cost, approximately $80 million (Rs 600 crore), will be covered by internal accruals.
Kashyap Joshi, CEO of AQuity, expressed optimism about the acquisition, highlighting the potential to accelerate their commitment to delivering practical and proven solutions. He emphasized the aim of enhancing patient experiences and facilitating the thriving of medical practices, groups, and hospitals.
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IKS Health envisions a combined Total Addressable Market (TAM) of approximately US$195 billion across pre-acute and acute care markets. The company also has ambitious plans for growth, anticipating the recruitment of an additional 50,000 resources over the next three years. This significant expansion is in addition to the existing combined workforce of 14,000 employees, further underlining the company’s commitment to delivering excellence in the healthcare sector
