labels: M&A
General Dynamics Information Technology to acquire ViPS, Inc news
09 June 2008

Systems integrator General Dynamics Information Technology, a unit of General Dynamics has entered into a definitive agreement to acquire information management software developer ViPS, Inc, a wholly-owned subsidiary of HLTH Corporation, for approximately $225 million.  

ViPS had revenue of $103.1 million in 2007, and has approximately 600 employees.

The transaction, which has been approved by the boards of directors at General Dynamics and at HLTH, is expected to close in 2008 subject to normal regulatory approvals.

General Dynamics Information Technology  said in a statement, "The company has extensive credentials in application development and integration, including information assurance and security."  After ther completion of the transaction, ViPS will become part of the General Dynamics Information Technology business unit.

"ViPS is an outstanding company that provides complementary capabilities and an expanded customer base in a high-growth market segment for General Dynamics Information Technology,'' said Dan Johnson, president of General Dynamics Information Technology, in a statement.  ''ViPS has significant skills in application integration and information assurance, as well as an exceptional reputation within the Department of Health and Human Services, and specifically the Centers for Medicare and Medicaid Services, as a provider of secure applications that create lasting value for its customers.''

ViPS provides high-end healthcare technology solutions, including data management, analytics, decision support, and process automation that support both federal agencies and commercial healthcare organisations.  It is a key services provider in supporting CMS and private payers' efforts to reduce healthcare costs and claims fraud, increase customer satisfaction and improve patient outcomes. 

ViPS was founded in 1979 as Viable Information Processing Systems to create software to process claims for Medicare, the US government's health insurance scheme for the elderly and disabled. In the '90s,  it started developing products for commercial health insurers. In 2004, it was acquired by WebMD Corp, a Health care technology firm for $160 million.

According to Art Lehrer, president and CEO of ViPS, said ViPS was known as a best-in-class provider of advanced analytic solutions to US government health agencies and commercial health payers. The opportunity to join a market leader like General Dynamics Information Technology will allow us to build upon our market-leading suite of solutions, apply additional resources and expanded capabilities to our customers and provide our loyal employees with unparalleled growth opportunities.''


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General Dynamics Information Technology to acquire ViPS, Inc