Affiliated Computer Services, Dallas, will acquire Dearborn, Mich.-based Superior Consultant Holdings Corp., a healthcare information technology and management firm.
Under terms of the deal, Affiliated will purchase approximately 10.6 million shares of outstanding Superior common stock at $8.50 a share, plus options and warrants, a deal valued at $106 million before transaction costs, according to a statement by Affiliated.
"We believe that the addition of Superior's integrated consulting and outsourcing capabilities is the right ingredient to effectively deliver a full suite of services to the healthcare provider market," said ACS Chief Executive Officer Jeff Rich in a news release. Superior, whose stock is listed on the Nasdaq exchange, employs more than 700 people. Affiliated, a Fortune 500 company whose stock is traded on the New York Stock Exchange, claims more than 43,000 people working in 100 countries.
Richard Helppie, founder and chief executive officer of Superior, said his company brings to the table a customer list of 3,000 healthcare entities, plus "deep healthcare consulting experience" in both management and "our bread and butter, which is application delivery. Most of the software systems in a healthcare environment need to be customized and implemented. We do the technical integration and the process integration. We deliver that through consulting and full outsourcing," he said.
Merging with ACS will give his company scale to pursue consulting work in some of the nation's largest healthcare enterprises, Helppie said, plus give it a larger platform to explore mid-market opportunities.
Helppie will continue as managing director of the combined company, responsible for ACS' commercial healthcare provider services. Most of the 700 Superior employees, including all of the consultants who are the most familiar to healthcare clients, will be offered positions with the company after the merger, Helppie said, though some changes are expected where there are redundant positions in the back office.
Superior's Dearborn office will become the healthcare headquarters for the merged company, he said.