IKS Health, a clinical documentation, coding and revenue tech company, acquired AQuity Solutions for $200 million, the companies said Tuesday.
While IKS Health has primarily focused on products for the ambulatory market, AQuity has offered similar solutions in acute care settings. The combined company will have revenue of $330 million and employ 14,000 people.
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The transaction closed Friday. Both companies are privately held.
“It seemed to us the perfect combination where us and AQuity came together and joined forces to create a solution that enables clinicians and their enterprises to deliver better, safer and more efficient care across that continuum of care,” said IKS Health CEO Sachin Gupta.
IKS sells a platform solution that automates administrative, clinical and operational functions for health systems, academic medical centers and medical groups. The company will add AQuity’s technology to bolster its care enablement platform, which uses artificial intelligence to help clinicians document care.
AQuity will be a subsidiary of IKS and its CEO, Kashyap Joshi, will stay on in an executive role.
The AI that IKS uses was developed internally and through partnerships with outside vendors, Gupta said. In May, IKS made a strategic, undisclosed investment into AI company Abridge. In March, IKS invested an undisclosed amount into Sift Healthcare, which has developed AI solutions to help clinicians manage denials. IKS is also looking at an investment for AI coding solutions, Gupta said.
“The AQuity acquisition is accretive to the strategic investments we’ve made into gen AI,” Gupta said.
Since it was founded in 2006, IKS has grown without outside investments, Gupta said. He added that the company is profitable and had not taken on any debt until this deal. The company did not specify how much debt was used for the acquisition.
