A growing Wilmington-based health care technology company recently acquired another business and aims to hire more employees locally next year.
TCS Healthcare Technologies has acquired Montana-based DataSmart Solutions LLC, a predictive risk analytics software company, according to a news release. The acquisition closed in late May, said Deborah Keller, CEO of TCS Healthcare, this week.
TCS purchased DataSmart “for four times their annual revenue,” Keller said, declining to share the revenue amount.
TCS Healthcare Technologies transitioned its headquarters to Wilmington in January, moving the base from Auburn, California. The company opened up a satellite office in March 2020, with plans to grow the company in the area
The company is located in about 4,500 square feet at 401 Chestnut St. in downtown Wilmington.
“We still have our office in Auburn, California. And with the acquisition of DataSmart Solutions, we now have an office in Helena, Montana,” Keller said.
The business is located in two suites, but will look to find a larger space soon, she said.
“We started with a small footprint, although I anticipate us probably in the next 12 to 18 months, moving to a larger space,” she said, adding that the company is expecting to add another 10 to 15 employees based out of the Wilmington office in 2022.
The company has a total of 60 employees between the three locations with 50 of those employees in the Wilmington area. Job postings, however, are slated to begin in November, she said.
“What the services that the analytic software that DSS provides is a nice value add for our existing clients,” she said of the recent deal. “Speaking more forward-facing, we want to take what they do, make it more robust in its capabilities, update the visualization and make it available as a stand-alone product but more updated in technology and presentation.”
The transaction was supported by follow-on funding from California-based HCAP Partners, a private equity firm, with merger and acquisition services provided by Logan Growth Advisors, stated a news release.
"TCS software solutions are designed to support the needs of health plans, TPAs, ACOs, and other risk-bearing organizations by optimizing clinical outcomes, maintaining compliance, and improving financial and operational excellence," stated the release.
The acquisition accelerates the TCS's product development roadmap "for the ACUITYnxt SAAS platform and offers Johns Hopkins ACG predictive analytics for use in the Acuity Advanced platform," states the release.
"The company's solutions along with its solid reputation for serving its clients makes it a strong addition to TCS," Keller said in the release. "We are excited to welcome the DataSmart team to TCS and to bring Johns Hopkins ACG risk analytics to both our Acuity Advanced and ACUITYnxt platforms."