September's top stories: Cognizant, TriZetto’s $2.7bn deal, Fosun bids $580m for ESS
Cognizant to acquire healthcare IT software and solutions provider TriZetto for $2.7bn in cash, China’s Fosun International announced a bid of €451m ($580m) to acquire Portugal-based hospital operator Espirito Santo Saude (ESS), and the UK will set-up a new Ebola medical treatment centre in Sierra Leone. Hospitalmanagement.net wraps up key headlines from September.
US-based Cognizant signed an agreement to acquire healthcare IT software and solutions provider TriZetto for $2.7bn in cash.
The acquisition will help Cognizant to expand the services to a wide range of healthcare clients. The combined companies will serve around 245,000 healthcare providers, with a revenue of about $3bn.
The acquisition will also provide Cognizant with multiple industry-leading software platforms used by payers and providers, and will result in around $1.5bn of revenue synergies cumulatively over the next five years.
Chinese investment firm Fosun International announced a bid of €451m ($580m) to acquire Espirito Santo Saude (ESS), a Portugal-based hospital operator.
Offered through Fosun's Portuguese subsidiary Fidelidade, the €4.72 per share beats the €4.50 per share bid made by Mexico's Grupo Angeles.
Fosun noted that the bid represents a premium of 31% over the average share price from the previous six months. ESS operates hospitals, clinics and elderly care homes across Portugal.
US-based hospital operator Universal Health Services (UHS) acquired UK-based Cygnet Health Care for around $335m.
The acquisition will add 17 facilities for Cygnet in the UK, which includes 15 inpatient behavioural health hospitals and two nursing homes with a total of 743 beds.
UHS noted that Cygnet generated around $161m of annual revenue over the past 12 months.
This transaction will mark UHS' re-entry into Europe. In the past, the company had operated and sold facilities in the UK and France.
High Wood Heath, a consortium of Laing O'Rourke and Serco, secured a contract to construct a new district general hospital for the Dumfries and Galloway region in Scotland.
The value of the hospital could be around £200m. High Wood Health intends to commence the construction of the new facility in early 2015.
Project director Dennis O'Keeffe said: "Following an intense period of competitive dialogue and evaluation, we are pleased to announce High Wood Health as our preferred bidder.
"Their proposed solution is one that brings to bear a consortium of designers and contractors with considerable expertise and resources to fulfil our expectations."
The UK International Development Secretary Justine Greening announced plans to construct a new 62-bed medical treatment centre to treat victims of the Ebola outbreak in Sierra Leone, West Africa.
The centre will be run by military engineers and medical staff. The first phase of the centre is expected to be constructed and operational within eight weeks.
The new facility will include a 50-bed medical unit to treat victims of the disease. It will be staffed by international health workers and Sierra Leonean medical staff.
Columbia Asia, part of Seattle-based Columbia Pacific Management, plans to invest around $150m to expand its hospital network in India and South-East Asia.
The hospital intends to increase its network to 34 hospitals and one clinic by 2018.
In the last few months, Columbia Asia has launched four new hospitals in Jakarta and Semarang, Indonesia, as well as Bangalore and Ahmedabad, India.
The University of Pennsylvania partnered with Novartis for construction of new Center for Advanced Cellular Therapeutics (CACT) on the Penn Medicine campus in Philadelphia, US.
Novartis has provided $20m to partially fund the project, which will be used to build the 30,000ft² facility.
The project includes the development and manufacture of personalised cellular cancer therapies, through a joint research and development programme led by scientists and clinicians from Novartis and Penn Medicine.
Schick Construction & Cartage secured a contract for the development of the Acute Services Building (ASB) of Christchurch Hospital in New Zealand.
The 62,000ft² ASB will be constructed, as part of the $650m redevelopment of Christchurch and Burwood Hospitals.
According to New Zealand's health ministry, ASB is one of the anchor projects in Canterbury's recovery from the 2010 and 2011 earthquakes.
ASB will also help Canterbury District Health Board to meet the health needs of the growing and increasingly ageing population.