Navigant Consulting is forking over up to $100 million to acquire an Irvine, California-based company that specializes in revenue-cycle management.
A 13-year-old company, Cymetrix Corp. helps hospitals and health systems collect on the bills they charge patients and insurers for services.
Under the terms of the deal, Chicago-based Navigant paid $75 million in cash to shareholders of Cymetrix for the entirety of the company's equity. Navigant will pay up to an additional $25 million based on how well Cymetrix meets certain performance benchmarks.
Buying Cymetrix allows Navigant to "expand our business platform beyond consulting services to incorporate more data analytics
products, technology-enabled solutions and operations outsourcing,” said Julie Howard, Navigant's chairman and CEO, in a statement.
Cymetrix CEO Michael Halberda will stay on to run the company as a subsidiary of Navigant's health care arm. The company has about 600 employees.
The deal has closed, and the company has been renamed Navigant Healthcare Cymetrix.
Navigant yesterday revised its revenue outlook for the year following the acquisition. Total revenue for 2014 will be from $848 million to $892 million, with about $38 million to $42 million from Cymetrix.
Navigant posted revenue of $835.6 million in 2013. Shares were at $16.30 in morning trading today, down nearly 2%."Navigant buys back-office healthcare vendor Cymetrix" originally appeared on the website of Crain's Chicago Business.