Wipro is purchasing US- based insurance technology platform Health Plan Services for $460 million (over Rs 3,000 crore), its fourth acquisition in less than six months and its largest since the $600-million buyout of the US data centre contributor Info crossing in 2007.
Health Plan Services, established in 1970 and headquartered in Tampa, Florida, is owned by Water Street Healthcare Partners, a private equity company focused entirely on the healthcare industry. Wipro will fully buy out Water Street. In the last month, Wipro vice-chairman T K Kurien said that insurance has “been a drag from the time I took over (in February 2011) till now.” He said the company had not found a good contender to purchase.
“The partnership with Health Plan Services positions Wipro to participate in the shift of the US health insurance industry towards a consumer-centric business model,” said Jeffrey Heenan Jalil, head of the healthcare life sciences and services business of Wipro.
The recent acquisitions are a few steps to address that imbalance, build expertise in emerging areas like digital, and cater to the rising demand from consumers to offer IT and business solutions as a service.