IKS Health Acquires AQuity Solutions In US For Rs 1,600 Cr, Eyes For IPO Soon

Backed by revered investor the late Rakesh Jhunjhunwala, IKS Health which mostly operates in the United States and provides tech-enabled services to healthcare providers has acquired a US-based tech solutions firm AQuity Solutions for USD 200 million or Rs 1664 crores. The acquired firm provides tech-enabled clinical documentation, medical coding, and revenue integrity solutions for healthcare and will function as a wholly-owned subsidiary for IKS Health. 

IKS Health was servicing the ambulatory care providers in the US but with the new acquisition, the company will now be able to provide its extended services to hospitals as well.

The company said in a statement that its ambulatory market will be coupled with AQuity’s market in the acute care market to create an entity that enables clinicians and their enterprises to deliver better, safer, more efficient care across the continuum of care delivery.

Speaking exclusively to BW Healthcare World, Sachin K. Gupta, Founder and CEO of IKS Health said that the company has not diluted any equity to fund the deal, adding that the all-cash deal is a combination of internal accruals and some debt from banks. 

The company is raising around Rs 1000 crore from three leading banks including JP Morgan, CITI and SMBC for financing Rs 1600 crore acquisition and the remaining Rs 600 crore from internal accruals. 

They also expect to recruit 50,000 more resources within the next three years. The addition of employees is over and above the current team strength of 14,000 people. The combined revenues of IKS Health and AQuity is around Rs 2700 crore.’ 

Plans For IPO & Indian Market

Speaking on the company's plans for its Initial Public Offering, Sachin said that IPO is an important milestone in a company's journey and as the company finalises its plans for that more information will be forthcoming. "Our company was founded way back in 2007 - it was a vision of one of my mentors Mr Rakesh Jhunjhunwala who came together with me to start this company, the IPO was one of his dreams for the company and we will fulfil that dream."

On servicing Indian healthcare providers or catering to the Indian market, Sachin said that the healthcare sector in India is going through an evolution phase and will mature over a period of time adding that health insurance penetration is growing dramatically in India and as it grows insures will reimburse for different types of care. 

He further said that today ambulatory care is not reimbursed by most Indian health insurance companies but tomorrow it will be. "As the Indian per capita grows from USD 2,500 to USD 10,000 mark with lifestyle diseases taking over in the next 10-15 years the market will mature and as that happens we will try to confluence all our learning from the US market with the realities of the Indian market. But for the foreseeable future, our attention will be on the US market."

US Market and The Big Opportunity

The USD 4.7 trillion US market projected to be around USD 7 trillion by 2031 is going through a deepening crisis from all sides, stated Sachin adding that financial instability, large-scale staffing challenges, and the precarious health status of so many Americans all call for deeper, more comprehensive solutions that address these root issues.

“Delivering better, safer care is everyone’s top priority—but too often, the ‘chores’ of healthcare get in the way of that core purpose. To help turn the tide amidst this state of crisis, we firmly believe that revitalizing the clinician-patient relationship and helping our partners thrive financially are both fundamental. The coming together of IKS and AQuity allows us to enable clinicians with their chores across the continuum of care,” he concurred. 

Presently the combined company’s 14,000 employees include 1,500 clinicians, over 350 technology experts, medical coders, revenue integrity specialists, and clinical documentation specialists.

“By combining our capabilities, we will accelerate our commitment to delivering meaningful, pragmatic, and proven solutions for the entire continuum of care, so that patients have a better experience and practices, groups, and hospitals can thrive,” said Kashyap Joshi, CEO of AQuity.