Gainwell Technologies acquires health care tech company for $3.4B

Reston-based Gainwell Technologies, a six-month-old spinoff company of DXC Technology, has completed its approximately $3.4 billion acquisition of HMS Holdings, a Texas-based health care technology company, Gainwell announced April 1.

The all-cash deal, announced in December 2020, was made for $37 per share.

Gainwell, which has more than 7,500 employees, was created in October as the result of a spinoff from Tysons-based Fortune 500 IT services company DXC Technology. New York-based private equity firm Veritas Capital bought DXC’s U.S. State and Local Health and Human Services business for $5 billion.

Gainwell said it would focus on Medicaid management information systems, fiscal agent services, program integrity, care management, immunization registry and eligibility services.

Veritas says it will bring the capabilities of HMS to Gainwell and another of its companies, Cotiviti Inc., which provides data-driven health care solutions.

“The combination of HMS and Gainwell gives states and Medicaid managed care organizations access to the broadest portfolio of offerings in the industry,” Gainwell President and CEO Paul Saleh said in a statement. “Together, we will empower clients through innovative technology and differentiated solutions to deliver great health and human services outcomes.”