Providence Services Group (PSG) is acquiring healthcare IT consultancy Navin, Haffty & Associates, and combining the acquired business with PSG's Engage IT Services organization. Financial terms of the deal were not disclosed.
This is M&A deal 330 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.
Both Navin Haffy and Engage are Meditech EHR (Electronic Health Records) platform partners. Navin Haffty, founded in 2001, collaborated with Meditech to develop its EHR implementation model in 2012. Engage provides IT solutions and full Meditech support for hospitals.
The merger will create what PSG is calling “the industry’s most comprehensive and complete Meditech professional services offering.” The combined company, with more than 300 staff and consultants, will provide consulting, implementation, hosting, service desk and application support, staff augmentation, and technical services.
Navin Haffty and Engage IT Merger: Executive Commentary
John Haffty, president of Navin Haffty, commented on the deal:
"The entire team and I at Navin Haffty are proud and excited to partner with Engage. Together, we will provide Navin Haffty customers with access to the breadth of innovative information technology services Engage is known for. By joining PSG, Navin Haffty becomes part of a premier outcomes-focused organization that ensures the success of our clients."
Fred Galusha, CEO of Engage, said:
"Engage is looking forward to the impact we can have together for the MEDITECH market. Our combined strength not only deepens our collective expertise but broadens service lines to provide maximum value for the MEDITECH community and the healthcare industry as a whole.”
Cascadia Capital served as the exclusive financial advisor and Davis Wright Tremaine acted as legal counsel to PSG. VRA Partners served as the exclusive financial advisor and Mirick, O'Connell acted as legal counsel to Navin, Haffty & Associates.
This merger is part of Providence’s strategy to create an independent solutions and services provider for the healthcare industry. The strategy includes Providence in 2020 acquiring Epic consulting firm Bluetree.
Healthcare IT Consulting Firms: Mergers & Acquisitions
HIPAA and electronic health records create a wide range of compliance issues for medical practitioners. The result: Strong demand for healthcare-focused IT service providers, and continued M&A activity in the sector.
ChannelE2E has compiled a list of all healthcare MSPs involved in mergers and acquisitions.
