Backed by the private equity firm Actis, business process outsourcing company The ConJoin Group has acquired PHNS for $250 million. Dallas-based PHNS provides information technology and business process outsourcing services for the healthcare industry. The ConJoin group is based in Boston.
The ConJoin Group, an IT and business process outsourcing company, has acquired PHNS, the leading provider of healthcare IT and BPO services for US$250m.
The ConJoin Group transforms companies by reinvigorating their sales approach and building flexible global delivery platforms. PHNS’ core strength lies in its clinical domain expertise as a comprehensive provider of healthcare IT and BPO systems, spanning data centers, help desk, telephony, clinical transformation, audit and all aspects of secure health information management. Together as a combined entity The ConJoin Group and PHNS will deliver world-class integrated solutions under the PHNS brand name.
PHNS will prioritise ramping up existing product offering and significantly expanding its scope and influence in the healthcare IT market.
Since US legislation in 2009, when the American Recovery and Reinvestment Act (ARRA) specified the minimum level of IT usage each hospital must achieve by 2018, a race has been on across leading medical institutions nationwide to modernize in time to reach this aggressive target. The combined capability provided by The ConJoin Group and PHNS under the brand name PHNS will accelerate the adoption of high quality IT and BPO services making the goal reachable and affordable for these hospitals and healthcare providers.
Commenting on the deal, new CEO of the merged entity Richard S. Garnick said “The ConJoin Group saw a significant opportunity to dramatically scale up operations and improve the PHNS product offering in response to unprecedented North American demand for healthcare IT services. The ConJoin Group’s global delivery model will prove a key point of competitive advantage for the company going forward. We are delighted with the deal.”
Actis private equity firm backed the investment. Commenting on the transaction, Head of Actis South Asia, JM Trivedi, said “This deal builds on a deep tradition of Actis investing in the BPO sector, building on the success of Daksh (exited 2005) and our recent investment in BPO and KPO provider Integreon ( February 2010). Supporting the provision of a high quality service to healthcare providers aligns with both our investment thesis and our values.
The Conjoin Group and Actis were advised by Jefferies & Co. and Clifford Chance LLP, and PHNS was advised by William Blair and Company and Jones Day.
PHNS provides comprehensive information technology and business process services to hospitals and healthcare providers across the United States. PHNS’ IT services include implementation, maintenance and support of clinical, financial and administrative applications; data centers; help desk; and telephony and local wide area networks for hospitals.. Its business process services include end-to-end revenue cycle management, and health information management services (including medical record management and storage, transcription, coding, release of information and electronic medical record services). By provisioning hospitals with comprehensive, high-quality, flexible and secure IT services PHNS improves hospitals’ healthcare services while reducing costs and streamlining processes. It leverages knowledge and expertise built over a decade of operations about clinical and administrative IT processes and best practices, to provide improved IT and BPO services at lower costs to customers.
About ConJoin Global
The Conjoin Group is an IT and business process outsourcing company with a notable difference from earlier generations of BPO providers. It distinguishes itself through its operating model that unlike earlier generations of BPO providers, who were primarily focused on large-scale replacement of repetitive tasks with limited value-add beyond cost reduction, is predicated on improving a business’ overall performance in an accelerated way by facilitating a true transformation of the business, utilizing vision creation and transformational leadership along with cost optimisation to make a rapid positive impact. ConJoin serves markets not generally supported by existing global outsourcers, especially mid-market corporations considered too small by these global players. Conjoin was created by Richard Garnick and Jefferson Partners, a Toronto based private equity firm.
Actis is a leading private equity investor in emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$4.7bn funds under management. With over 100 investment professionals on the ground in 9 offices worldwide, Actis identifies investment opportunities in India and the emerging markets by bringing local experts together with specialist sector teams. In February 2010, Actis invested US$50m in Integreon, the leading global provider of legal support, research and business services to law firms, financial institutions and corporations.