(RTTNews) - HMS Holdings Corp. (HMSY) and Veritas Capital-backed Gainwell Technologies announced Monday that they have entered into a definitive agreement whereby Gainwell will acquire HMS in an all-cash transaction valuing HMS at approximately $3.4 billion.
Under the terms of the agreement, HMS shareholders will receive $37.00 in cash per share. The per share purchase price represents a 52% premium to HMS' unaffected share price as of October 2, 2020, the last trading day prior to when reports of a possible transaction were published.
The transaction is unanimously approved by HMS' Board of Directors. The closing of the transaction is subject to the approval of HMS shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.
The transaction, which expands Gainwell's capabilities as an analytics-driven healthcare technology provider, is expected to close in the first half of 2021.
Veritas will look to optimize the HMS solution set across Gainwell and Veritas-backed Cotiviti, Inc., a leading provider of data-driven healthcare solutions.
Gainwell will acquire the HMS capabilities focused on the Medicaid market, including solutions delivered to states and managed care organizations, and Cotiviti will acquire the HMS capabilities focused on the commercial, Medicare, and federal markets.
The addition of the HMS business lines will further expand Gainwell's and Cotiviti's capabilities with unique, data-driven technology and service solutions.
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