*Patni Computer Systems *has agreed to acquire *CHCS Services*, a subsidiary of *Universal American Corp*, as a part of a outsourcing deal.
The acquisition will cost $20mn in impairment charges. The transaction is expected to closed in 30 days. The deal is a 5-year $200-250mn agreement for providing end-to-end policy administration services for Universal American, a US health insurance company. CHCS is a third-party administrator (TPA) which processes insurance claims and certain aspects of employee benefit plans for Universal American. Patni has agreed to takeover the 200 employees and assets of CHCS in Pensacola, Florida. This will provide Patni a base in US for third-party-administrator operations. Transaction Note Patni currently has 4 on-shore centers in the US, Bloomington, Illinois; Milpitas, California; and Cambridge, Massachusetts. It opened an El Paso, Texas facility in March 2010 and a near-shore center in Queretaro, Mexico. The new centers may have been opened in response to the agreement with Universal American. CHCS is its first TPA facility and allows Patni to start a new line of business. This is the first acquisition of an onshore TPA facility by a big IT services company. There are many small companies in India providing offshore TPA services. Universal American has been Patni’s customer since 2005. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
