Dive Brief:
- Revenue cycle management, data network and analytics vendor Emdeon Inc. has announced it is buying Altegra Health for $910 million.
- Altegra provides technology and intervention platforms that combine data aggregation and analytics for risk-bearing companies. The acquisition will combine Altegra's risk adjustment and quality analytics with Emdeon's Intelligent Healthcare Network, according to an Emdeon press release.
- The deal is subject to antitrust review but is expected to close in Q3. Emdeon will use both debt and equity financing to meet the purchase price.
Dive Insight:
This isn't the first significant insurance-related IT acquisition that Emdeon has made in the last year. Last fall, it acquired Change Healthcare, which provides consumer-facing purchasing tools for payers and self-insured employers. The price tag on that deal was $185 million. But it's doing the volume of work to support that kind of growth: Emdeon processed 8.1 billion transactions last year and $1 trillion in claims annually.
Altergra operates throughout the U.S., Puerto Rico and the Philippines, and most notably has a jump on the growing provider-sponsored health plan market, according to Modern Healthcare.