CareTech Solutions, a Troy, Mich.-based health care information company, is negotiating a sale with Troy-based HTC Global Services, company officials confirmed with Crain's today in a statement.
Founded in 1998, CareTech is a joint venture of Compuware Corp., Oakwood Healthcare and Detroit Medical Center. It employs 1,200, with about 650 in metro Detroit, and has contracts with more than 200 hospitals.
In a statement to Crain's, CareTech said last week it filed an “intent to sell” to HTC with the Federal Trade Commission.
“We are now undergoing the necessary administrative process that goes along with this filing. At this time, there is currently no agreement,” CareTech said in the statement.
On Nov. 20, the FTC notified CareTech that it would not challenge the proposed acquisition by HTC, an international business support company headed by CEO Madhava Reddy.
The CareTech board is reviewing the sale agreement, according to sources. The six-member board is composed equally of representatives from Compuware, Oakwood and DMC.
Oakwood CEO Brian Connolly, who sources said is spearheading the deal, is chairman of CareTech. Bob Paul, CEO of Compuware, also is on the board. Lead representative for the DMC is CFO Jay Rising.
HTC ranks No. 102 on Crain's Detroit Business list of largest privately held companies with $153 million in 2013 revenue, compared with $135 million in 2012. It employs about 180 locally and 5,500 worldwide with offices in Canada, Europe and India.
CareTech ranked No. 100 on the list with $162.8 million in 2013 revenue compared with $161 million in 2012.
Sources said one concern expressed by employees is that HTC might move some of its customer service operations to India.
In 2011, CareTech opened a $1.5 million information technology data center to help hospital clients keep billing and clinical care systems running smoothly. That same year, it opened a $5 million operations center.
The data center was made possible through a $7.8 million Michigan Economic Development Corp. tax credit in 2008.
