Healthcare Triangle (HCTI) Closes Previously Announced Acquisition of DevCool, an Electronic Health Record (EHR) Focused Healthcare IT and Managed Services Company

Rhea-AI Summary

Healthcare Triangle, Inc. (HCTI) has completed the acquisition of DevCool, Inc. for approximately $7.7 million. This strategic move is anticipated to generate around $20 million in annual revenues and enhance EBITDA. With DevCool's expertise in EHR Implementation and Managed Services, particularly with major U.S. hospitals, HCTI aims to improve patient care and reduce IT costs. This acquisition will also strengthen HCTI's presence in California and the West Coast, providing synergistic opportunities and expanding its client base.

Positive

• Acquisition expected to add approximately $20 million in annual revenues.
• Transaction valued at approximately $7.7 million, enhancing EBITDA.
• Strengthens HCTI's position in California and the West Coast.
• Expected improvements in patient care and reductions in IT costs.

Negative

• None.

Acquisition Expected to Add Approximately $20 Million in Revenues

PLEASANTON, Calif., Feb. 24, 2022 (GLOBE NEWSWIRE) -- Healthcare Triangle, Inc. (HCTI), a leading provider of Healthcare and Life Sciences cloud transformation, managed services and data analytics platform company announced today that it has completed its previously announced acquisition of DevCool, Inc. (“DevCool”). DevCool provides EHR Implementation and Managed Services to 6 of the top 10 Hospitals in the US and specializes in providing services to cancer research hospitals and university medical centres. Healthcare Triangle completed the transaction for a total consideration of approximately $7.7 million.

The acquisition is expected to add approximately $20 million in annual revenues and be accretive to EBITDA.

Speaking of the acquisition, Suresh Venkatachari, Chairman and CEO of Healthcare Triangle said, “We’re excited to close this transaction and we look forward to the many opportunities the combination will provide. We believe the combined entity will present a compelling offering for healthcare providers to improve the provisioning of patient care, reduce information technology costs, and enable faster EHR deployments. We expect this will induce healthcare providers of all kinds to adopt cloud technologies more rapidly, which will contribute to Healthcare Triangle’s continued growth.

“The acquisition has already solidified our business relationship with users of EPIC EHR software, and we’ve witnessed an increase in our EPIC client base, said Venkatachari. “The addition of DevCool’s clients base will strengthen HCTI’s leadership in California and the West Coast region in addition to our growing position across the U.S. We believe we will also have significant opportunities for synergistic cost improvements and cross selling opportunities as we combine our sales, operations and GoToMarket activities.”

About Healthcare Triangle, Inc. (HCTI)

Healthcare Triangle, Inc. based in Pleasanton, Calif., reinforces healthcare progress through breakthrough technology and extensive industry knowledge and expertise. We support healthcare organizations—including hospitals and health systems and health plans—as well as pharma and life sciences organizations, in their efforts to improve health outcomes. Healthcare Triangle enables the rapid adoption of new technologies, data enlightenment, business agility, and response to immediate business needs and competitive threats. The highly regulated healthcare and life sciences industries rely on Healthcare Triangle for expertise in digital transformation encompassing the cloud, security and compliance, data lifecycle management, healthcare interoperability, and clinical and business performance optimization. For more information, visit HealthcareTriangle.com.

Visit www.healthcaretriangle.com for more information.

Healthcare Triangle, Inc. Contact:
For Media Enquiries:
Michael Campana
michael.c@healthcaretriangle.com

Healthcare Triangle, Inc. Investor Relations:
John McNamara
john@tradigitalir.com
917-658-2602

FAQ

What is the impact of the acquisition of DevCool on HCTI's revenue?

The acquisition of DevCool is expected to add approximately $20 million in annual revenues for HCTI.

How much did HCTI pay for DevCool?

Healthcare Triangle completed the acquisition of DevCool for a total consideration of approximately $7.7 million.

What services does DevCool provide to HCTI?

DevCool specializes in EHR Implementation and Managed Services, primarily for cancer research hospitals and university medical centers.

When was the acquisition of DevCool completed by HCTI?

Healthcare Triangle announced the completion of the acquisition on February 24, 2022.

What strategic advantages does HCTI expect from acquiring DevCool?

HCTI expects to improve patient care, reduce IT costs, and strengthen its presence in the healthcare market, particularly with EPIC EHR software users.