IKS Health, backed by Jhunjhunwala family, buys US tech firm for Rs 1,600 cr

Healthcare platform IKS Health — backed by Rare Enterprises, a company founded by late investor Rakesh Jhunjhunwala — has acquired US-based tech solutions firm AQuity Solutions for $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.

On the other hand, IKS Health provides administrative, clinical and operational services to clinicians.

The combined company is forecast to have an annual revenue of over $330 million (Rs 2,748 crore), as well as a global workforce of over 14,000.

It will be serving over 150,000 clinicians in many large hospitals, health systems and specialty groups in the US.

Speaking on the acquisition, Sachin K Gupta, founder and chief executive officer (CEO), IKS Health, said that delivering better and 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 amid 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 $200 million acquisition cost will be raised through bank loans from a consortium of SMBC Bank, Citi Bank and JP Morgan.

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 of around $195 billion across pre-acute and acute care markets, according to a company communication.

The company also expects to recruit 50,000 more people within the next three years.

Currently, it has a combined strength of 14,000 employees.