HMS to purchase HealthDataInsights to the tune of $400M

HMS Holdings has entered into a definitive agreement to acquire privately held HealthDataInsights (HDI) for approximately $400 million. The transaction is not contingent upon financing and is expected to close by Dec. 31, subject to regulatory approvals.

After applying HMS’s revenue recognition methodology, HDI, a technology-enabled healthcare services company, is projected to contribute approximately $85 million of revenue to HMS in 2012, the New York City-based HMS stated.

The acquisition of HDI is expected to extend HMS’ reach into the commercial health plan market, and in addition, provide them with an opportunity to expand service offerings to existing Medicaid managed care plan clients.

HDI will become a wholly owned subsidiary of HMS. HDI employs approximately 400 people located at their headquarters in Las Vegas and facilities in California and Florida.

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