HealthStream, a workforce development software provider, has entered a definitive agreement to acquire San Diego-based HealthLine Systems, which produces credentialing, contact center and quality management software.
HealthStream is expected to combine HealthLine with its SyMed subsidiary, which produces an application that automates tasks involved in credentialing and requesting enrollment in health insurance networks.
The $88 million deal will add HealthLine to HealthStream's talent management offering. Michael Sousa, HealthStream's senior VP of business development, will serve as president of the company's newly-formed credentialing, privileging and enrollment business, the company also announced.
HealthLine's flagship product, Echo, is a software-as-a-suite solution that provides clients with sites for primary source verification for employee qualifications and aids in compliance with requirements from the CMS and quality organizations like the Joint Commission, which accredits U.S. health care organizations and programs.
HealthLine's San Diego office will be maintained. The transaction is expected to close in the first quarter.
Follow Adam Rubenfire on Twitter: @arubenfire