West Midlands-based software firm Misys was back on the acquisition trail yesterday - snapping up an American IT firm in a deal valued at $49 million (£27.6 million).
The Evesham-based group said its Misys Healthcare Systems business had acquired Payerpath, a firm which provides internet-based solutions for processing health claims.
Misys expects the deal will reduce Misys Healthcare
Systems' operating profit by a little more than £1 million in the second half of the current financial year, principally as a result of integration costs expected to be incurred before the period end.
Payerpath has established itself as a US leader in handling internet-based health-care claim transactions and currently processes more webbased claims transactions than any other company - about 50 million a year.
Misys Healthcare Systems will combine Payerpath's operations with its own electronic transactions clearing-house, M Transaction Services, which processes more than 420 million electronic transactions a year.
The business will operate as Payerpath, A Misys Company, and will be headquartered in Richmond, Virginia, where Payerpath is based.
Tom Skelton, chief executive at Misys Healthcare Systems, said: "Payerpath's business philosophy aligns well with ours at Misys Healthcare Systems.
"We both want to enable healthcare professionals to realise faster and more complete insurance reimbursements at a cost-effective price.
"Payerpath's quality solutions focus on each step of the reimbursement cycle - providing physician practices, hospitals and payers with a high level of user functionality, revenue cycle management features and adaptability.
"We're excited to complement our existing offerings with these new capabilities - for both our existing customers and for new customers."
Payerpath president and chief executive Jim Brady added: "By utilising Misys' extensive sales channels, the Payerpath offerings will be able to help more healthcare professionals than we could have reached alone."
Late last week Eveshambased Misys said it was taking action to iron out the banking business problems which had undermined its ability to increase half-year profits.
The firm is merging its wholesale and retail banking businesses in an effort to save up to £15 million a year. The move is expected to hit a small number of management jobs.
The divisions will be brought together as a single business called Core Banking.