SAIC To Acquire maxIT Healthcare for $473 Million
SAIC has announced that it will acquire maxIT Healthcare in a $473 million all-cash transaction. SAIC says it will combine maxIT, which is the largest private, independent healthcare IT consulting company in the US, with its previous healthcare IT acquisition Vitalize Consulting Solutions to create the country’s largest EHR consulting practice.
SAIC had previously announced its interest in expanding its EHR implementation and integration services to offset declining federal government revenue.
maxIT Healthcare’s 1,300 employees will join SAIC’s Health Solutions Business Unit. The acquisition is expected to close in August.
July 18th, 2012 at 7:13 am
Wow Mr you really have the scoop. Nice job.
July 18th, 2012 at 7:16 am
I am interested in receiving follow-up comments on this topic.
July 18th, 2012 at 12:53 pm
With all of the duplicity, and the difference in cultures and compensation, integration will be a nightmare and there will be casualties. Say good bye to VCS.
July 18th, 2012 at 2:45 pm
Any word on how VCS’ers feel about their integration?
July 18th, 2012 at 4:14 pm
The VCS folks with whom I spoke seem generally o.k. with their post-SAIC world, although I have only heard from a few so far. As for what they think of us maxIT’ers joining them, the jury is still out, although I have had a few of my old drinking buddies text to welcome me to the family.
VCS and maxIT do in fact have different cultures and compensation policies, so it will be interesting to see which model wins out, but I would very surprised if SAIC reaches a decision point for consultants prior to January if even soon thereafter. Duplication (hopefully not duplicity) may be a problem for those consultants who have a very limited skill set, are in an overstrength practice, or have inflexible work requirements. Sales and recruiting are two different cases though, and they may see an impact in Q4.
July 18th, 2012 at 4:23 pm
Anybody know the losing bidders?
July 18th, 2012 at 4:37 pm
I hear that maxIT folks (staffers) knew 30 minutes before the press release. I bet with Mr.’s sponsor connections with max and VCS he may have had an edge on that timeline?
July 18th, 2012 at 4:48 pm
This maxITer isn’t too happy about the acquisition. None of the other maxITer’s I have talked with are feeling really good about it either. I lived through the IBM buy out of Healthlink and thought that maxIT would resist the draw of the money. Guess I should have known better when the number of consultants ballooned to over 1000…….
July 18th, 2012 at 8:26 pm
As one who just went through SAIC integration, and many other acquisitions over the years the SAIC integration has been event less. No negatives!
July 19th, 2012 at 6:25 am
I am surprised Parker H would do this after what happened w Daou.
July 19th, 2012 at 7:19 am
Re: Certifiable: That’s mad money. If I was his family I wouldn’t blame him a bit and I’d go shopping. He held out a remarkably long time. Also, not sure about their cap structure but you never know who’s pushing to get their ROI.
Re: Kim: Give it time. Or, let me know what you’re taking. I’m a former acquiree from one of the infamous buyouts of boutique firm by megacorp…there’s a honeymoon period. Although, I have to say I’m impressed by the lack of mass flight of VCS’ers. Only time will tell.
Re: FredFriendly: I’ve heard the maxIT recruiters make crazy money. Doubt that was the model at VCS and CERTAINLY doubt that’s the model at SAIC.
Anyway, always nice to watch from the sidelines…you figure at some point you’ll end up on the field eventually!
July 19th, 2012 at 7:55 am
Re: maxIT’er: As a fellow maxIT’er, I was (and still am) a bit concerned. I can understand how as a former Healthlink employee, you are a bit gun shy, and if you were on the con call, you heard IBM and a number of other three letter acronym companies called out as examples of mergers gone bad. Perhaps a four letter acronym company will be different? As for me, given the length of my tenure with maxIT, I have been through some other troubling times within the company, and they have still managed to keep me happy to be their employee. I doubt that there will be any big changes for consultants between now and the January company meeting, and I imagine that Mexico 2013 will be a story for the ages.
September 19th, 2012 at 5:56 pm
Didn’t take long for the culture to change dramatically. Be concerned and beware.