- Cognizant enters into multi-year pact with HCSC, with plans to take over TMG Health
The takeover is reportedly supposed to be finalised and come into effect during the third quarter of the current year
In an announcement on Tuesday, June 13, leading IT services company Cognizant disclosed its plans to purchase TMG Health, a subsidiary of Health Care Service Corporation (HCSC) for an undisclosed sum of money. The services offered by Cognizant in the government and public health sectors are expected to witness a massive improvement as a result of the takeover.
The company said that this move binds TMG Health in an all new, multi-year service agreement, as part of which it will be offering IT, business process, and other services to the numerous operating units and subsidiaries of HCSC. The expected timing for the takeover to be closed is in the third quarter of 2017, although no further details about the monetary figures were disclosed.
TMG Health President and Chief Executive Susan Rawlings Molina said that with the rapid growth and expansion of Government business lines, several big and small players are stepping into the market, and this presents a unique opportunity for organisations.
With several offices in the states of Pennsylvania and Texas, TMG Health, which became a subsidiary of HCSC in 2008, provides a wide range of business process outsourcing (BPO) services to countless medical support programmes in the country.
Photograph: Cognizant Technology Solution/Creative Commons