Wednesday April 5, 2017 0 comments
DENVER -- TeleTech Holdings Inc. (NASDAQ: TTEC), a leading global provider of customer experience, engagement and growth solutions, announced it has acquired Connextions Inc. for $80 million from OptumHealth Holdings LLC. Through its proprietary technology-enabled services platform, Connextions delivers member acquisition, retention and engagement services to healthcare plans, providers and pharmacy benefits managers to drive growth, improve health outcomes and lower costs.
Enhancing the member and patient experience has been a key focus for TeleTech for decades, the company said. With this acquisition, healthcare becomes one of TeleTech's largest verticals with annualized revenue expected to exceed $300 million.
The combination of TeleTech and Connextions provides significant strategic and synergistic value by expanding TeleTech's healthcare offerings and adding several new marquee payor, provider, and PBM clients with long-term contracts, the company said.
TeleTech said it expects the acquisition to add approximately $115 million in revenue annually and to be EBITDA accretive in 2017.
"As the industry evolves, the opportunity for healthcare plans and providers to create value by simplifying and improving the member and patient experience continues to grow," said Ken Tuchman, TeleTech chairman and CEO.
"The acquisition of Connextions is a logical extension of our healthcare strategy. By combining our collective technology, analytics and experienced group of healthcare professionals, we will enable a better member experience that improves health outcomes and reduces healthcare costs.
“We are thrilled to welcome Connextions employees and clients to the TeleTech family and look forward to exciting progress in the months to come."
Connextions will become a part of TeleTech's Customer Management Services (CMS) segment, the company said.
In combining Connextions with the CMS healthcare business, TeleTech said it will take the opportunity to integrate and restructure the business to maximize value for both its newly acquired and existing healthcare clients.
TeleTech said it will share more business and financial details in its first quarter earnings release and analyst conference call.