Global consultancy Navigant has acquired RevenueMed, a US-based provider of business management services for the healthcare sector. The deal is set to be worth $22 million, paid in cash, with an additional contingent payment of up to $4 million agreed if certain specific targets are met.
RevenueMed was founded in 2002 by Michael von Grey, who currently still serves as CEO of the firm. Over the past 13 years RevenueMed has developed several proprietary software and process tools to support financial and back-office operations of healthcare providers. For the past six years the company has been named one of the Fastest Growing Private Companies in the United States by Inc. Magazine.
“We are delighted with the addition of RevenueMed, which augments our client offerings and further positions Navigant for long-term, sustainable growth,” says Julie Howard, Navigant Chairman and Chief Executive Officer. “Our continued investment in business process management services builds on and complements our deep consulting expertise.” With the move, reported to be worth between $22 million and $26 million, Navigant expects to add new recurring and more predictable revenue streams to the consultancy. “The addition of RevenueMed provides greater scalability in a fast growing sector to support our revenue and profitability growth goals”, comments Howard.
The acquisition of RevenueMed in addition is expected to act as a catalyst for growth, with business process solutions anticipated to be in high demand the coming years, against the backdrop of growing pressures to increase efficiency in the healthcare market. “The Healthcare sector is facing unprecedented pressure, focused on optimising operational efficiencies while delivering better outcomes and value to patients,” comments David Zito, Managing Director and Navigant Healthcare segment leader. “As we assist health systems to position themselves for the future amidst market and regulatory changes, we expect continued high demand for business process solutions.
For RevenueMed, the joining of forces will “create more options and solutions for a broader client base” says RevenueMed CEO Von Grey, who together with his leadership will continue to manage day-to-day operations. As part of the integration strategy, RevenueMed will be part of the Navigant Cymetrix business.