Combined business creates an End-to-End Value
Proposition to Help Payers Succeed in Consumer-centric US Health
Insurance Market
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading
global information technology, consulting and business process
services company, today announced that it has signed a definitive
agreement to acquire HealthPlan Services from Water Street
Healthcare Partners, a strategic investor focused exclusively on
the health care industry. Since partnering with Water Street in
2008, HealthPlan has grown to become the leading independent
technology and Business Process as a Service (BPaaS) provider in
the U.S. Health Insurance market. As part of the agreement, Wipro
will acquire 100% of HealthPlan Services’ shares for a purchase
consideration of USD 460 million.
Headquartered in Tampa, Florida, HealthPlan Services employs
over 2,000 associates. HealthPlan Services offers market-leading
technology platforms and a fully integrated Business Process as a
Service (BPaaS) solution to Health Insurance companies (Payers) in
the individual, group and ancillary markets. HealthPlan Services
BPaaS solutions are ideal for payers who want to operate in the
private and public exchanges and the off-exchange individual market
in the U.S.
HealthPlan Services provides U.S. payers with a diversified
portfolio of health insurance products delivered through its
proprietary technology platform. In the highly competitive Exchange
market, payers rely on HealthPlan Services’ innovative and robust
offering to acquire, service and retain members. Payers also
leverage the analytical and predictive engines of HealthPlan
Services to better serve their members. Today, HealthPlan Services
connects its payer clients to over 40 public exchanges and over 150
private exchanges in the U.S. HealthPlan Services has powered many
of these payers to achieve desired membership growth, while keeping
their administrative costs predictable.
The Patient Protection and Affordable Care Act has dramatically
altered the health insurance landscape in the U.S. The post-reform
individual market is growing at a fast pace and is expected to
continue to grow in coming years. By partnering with HealthPlan
Services, Wipro gains the competitive, first-mover advantage in the
high growth public and private exchange space for individual, group
and ancillary markets. This partnership also strengthens Wipro’s
payer portfolio, with access to HealthPlan Services’ payer
clientele.
This transaction is closely aligned with Wipro’s key levers for
growth, which are to dominate the services market through industry
utilities that multiple customers can use. This acquisition adds
another platform-led Business Process as a Service (BPaaS)
offerings, delivered on cloud to Wipro’s services portfolio.
Wipro’s clients currently include over 100 U.S. payers, leading
healthcare providers, and public health agencies.
“The partnership with HealthPlan Services positions Wipro to
participate in the shift of the US health insurance industry
towards a consumer-centric business model. HealthPlan Services
strengthens Wipro’s position in the health insurance exchange
market while offering synergies with Wipro’s presence in the
Managed Medicare and Commercial Group Insurance markets. The
addition of HealthPlan Services’ capabilities complements Wipro’s
strengths in claims processing and back office services. This is a
strategic move for us, as it advances Wipro’s vision of leveraging
unique insights into customer buying behavior and applying this
across the healthcare value chain. This will help us lower the cost
of healthcare and transform the quality of the member experience,”
said Jeffrey Heenan Jalil, Senior Vice President & Head –
Healthcare Life Sciences and Services, Wipro Limited.
“We welcome the HealthPlan Services team to the Wipro family.
Over the past eighteen months we have transformed our BPS business
into a platform-led BPaaS business with a strong focus on the
healthcare services market. This transaction will help us become
the leader in administrative service in the U.S. health insurance
industry. The partnership with HealthPlan Services also reinforces
our commitment to the US market by creating jobs and value within
the US economy,” said Nagendra Bandaru, Senior Vice President
and Head – Business Process Services, Wipro Limited.
“We are excited about what Wipro and HealthPlan Services can
accomplish together for our customers and employees," said Jeff
Bak, CEO and President of HealthPlan Services. “The combination
creates the first true end-to-end solution in the individual under
65 commercial market and the governmental over 65 and Medicaid
markets. Together, Wipro and HealthPlan Services will give payers
the power to accelerate growth strategies while providing both
Business Platform as a Service (BPaaS) and competitive
administrative service solutions. We are delighted that Wipro
believes in our talented people, strategic vision, corporate
culture and business fit to help insurers succeed in a
consumer-centric world.”
This transaction is subject to customary closing conditions and
regulatory approvals and is likely to be completed in next 60 to 90
days.
Investor Conference Call
We will hold a conference call today at 6.00 PM Indian Standard
Time (7:30 A.M. US Eastern Time) to discuss the acquisition. The
audio from the conference call will be available over a bridge as
well as online through a web-cast and can be accessed at the
following hyperlink -
http://services.choruscall.eu/links/wipro160211.html
An audio recording of the management discussions and the
question and answer session will be available online and will be
accessible in the Investor Relations section of our website at
www.wipro.com.
Time
06.00 PM - IST (7:30 AM-ET)
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Primary Access Toll Number (+91 22) 3938 1025 Standby Toll
Number (+91 22) 6746 8325 Bangalore Toll Number (+91 80)
3940 3977 Bangalore Standby Toll Number (+91 80) 6000 1221
US Toll Free Number 1 866 746 2133 US Standby Toll Number 1
323 386 8721 UK Toll Free Number 0 808 101 1573 UK Standby Toll
Number 44 203 478 5524 No passcode Required
Phone Number
Pass-code /Conference ID
Replay Dates (+91 22) 3065 2322 Access Code: India Toll (+91
22) 6181 3322
947765#
11-Feb-2016 to 10-Mar-2016 (+91 80) 3940 3988
International Toll 1 863 949 0105 Access Code: 11-Feb-2016 to
10-Mar-2016 947765#
About Wipro Ltd.
Wipro Ltd. (NYSE:WIT) is a leading information technology,
consulting and business process services company that delivers
solutions to enable its clients to do business better. Wipro
delivers winning business outcomes through its deep industry
experience and a 360 degree view of "Business through Technology.”
By combining digital strategy, customer centric design, advanced
analytics and product engineering approach, Wipro helps its
clients create successful and adaptive businesses. A company
recognized globally for its comprehensive portfolio of services,
strong commitment to sustainability and good corporate citizenship,
Wipro has a dedicated workforce of over 160,000, serving clients in
175+ cities across 6 continents. For more information, please visit
www.wipro.com.
About HealthPlan Services
HealthPlan Services delivers a best-in-class administrative
technology platform and consumer engagement services to Payers
and agents across the public exchange, private exchange and
off-exchange individual markets.
The company is the largest independent provider of sales,
benefits administration, retention, and technology solutions to the
health insurance and managed care industries. Headquartered in
Tampa, Florida, HealthPlan Services was founded in 1970 and employs
over 2000 associates. HealthPlan Services stands at the forefront
of the health insurance industry, providing exchange connectivity,
administration, distribution and technology services to insurers of
individual, group, voluntary and association plans, as well as
valuable solutions to thousands of brokers and agents nationwide.
For more information, please visit www.healthplan.com.
About Water Street
Water Street is a strategic investor focused exclusively on
health care. The firm has a strong record of building
market-leading companies across key growth sectors in health care.
It has worked with some of the world’s leading health care
companies on its investments including Johnson & Johnson,
Medtronic, Smith & Nephew and Walgreen Co. Water Street’s team
is comprised of industry executives and private equity
professionals with decades of experience investing in and operating
global health care businesses. The firm is headquartered in
Chicago. For more information about Water Street, visit
www.waterstreet.com.
Forward-looking and Cautionary Statements
Certain statements in this release concerning our future growth
prospects are forward-looking statements, which involve a number of
risks, and uncertainties that could cause actual results to differ
materially from those in such forward-looking statements. The risks
and uncertainties relating to these statements include, but are not
limited to, risks and uncertainties regarding fluctuations in our
earnings, revenue and profits, our ability to generate and manage
growth, intense competition in IT services, our ability to maintain
our cost advantage, wage increases in India, our ability to attract
and retain highly skilled professionals, time and cost overruns on
fixed-price, fixed-time frame contracts, client concentration,
restrictions on immigration, our ability to manage our
international operations, reduced demand for technology in our key
focus areas, disruptions in telecommunication networks, our ability
to successfully complete and integrate potential acquisitions,
liability for damages on our service contracts, the success of the
companies in which we make strategic investments, withdrawal of
fiscal governmental incentives, political instability, war, legal
restrictions on raising capital or acquiring companies outside
India, unauthorized use of our intellectual property, and general
economic conditions affecting our business and industry. Additional
risks that could affect our future operating results are more fully
described in our filings with the United States Securities and
Exchange Commission. These filings are available at www.sec.gov. We
may, from time to time, make additional written and oral
forward-looking statements, including statements contained in the
company’s filings with the Securities and Exchange Commission and
our reports to shareholders. We do not undertake to update any
forward-looking statement that may be made from time to time by us
or on our behalf.
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version on businesswire.com: http://www.businesswire.com/news/home/20160211005729/en/
Wipro LimitedVipin Nair+91
9845014036vipin.nair1@wipro.comorPurnima Burman+91
9900512025purnima.burman@wipro.comorWipro Investor Relations
Contacts:Aravind V S+91-80-4672
6186aravind.viswanathan@wipro.comorPavan N Rao+91-80-4672
6143pavan.rao@wipro.comorHealthPlan Services Media
Contact:Evan Brownstein+1
9179520350ebrownstein@healthplan.com
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