– HMS Holdings Corp acquires Accent, a payment accuracy, and cost containment business from Intrado Corporation for approximately $155 million.
– Accent’s offerings include comprehensive prospective and retrospective claims accuracy solutions, which incorporates both cost avoidance and overpayment recovery services.
– Addition of service provider to commercial and Medicare Advantage health plans to expand the breadth of HMS’ prospective and retrospective claims accuracy services.
HMS Holdings Corp. today announced it has signed a definitive agreement to acquire Accent, a payment accuracy, and cost containment business. HMS will purchase Accent from Intrado Corporation (f/k/a West Corporation) for approximately $155 million, plus net working capital on a cash-free and debt-free basis, which HMS expects to fund with cash on hand. The acquisition will expand HMS Holdings’ breadth of perspective and retrospective claims accuracy services for commercial and Medicare Advantage health plans.
Founded in 1986, Accent’s offerings include comprehensive prospective and retrospective claims accuracy solutions, which incorporate both cost avoidance and overpayment recovery services. Its capabilities and client base are highly complementary to HMS, providing immediate market expansion and growth opportunities. Accent’s broad spectrum of healthcare payer clients include large commercial health plans, Blue Cross and Blue Shield plans, provider-sponsored health plans, Medicare Advantage plans, third-party administrators and self-insured employer groups.
Financial Details
Accent generated approximately $50 million in net revenue in the last 12 months, based on unaudited, internal segment performance disclosures, and produced adjusted EBITDA margins that are comparable to HMS’s overall company margin. The closing of the transaction is subject only to customary closing conditions and regulatory approvals, including expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
Strategic Fit for Both Organizations
“HMS and Accent are an outstanding strategic fit and this combination offers numerous benefits for our clients and stakeholders,” said Bill Lucia, HMS Chairman, and CEO. “Our collective strengths will provide expanded payment accuracy capabilities across the healthcare payer landscape, and advance cost containment opportunities in the industry.
“The addition of Accent’s capabilities will open up a new coordination of benefits market for HMS with commercial payers, and extends our push into the Medicare COB market,” Lucia added. “Accent’s ideation expertise will also expand our range of edit and audit solutions, and enhance our skills across all of our COB and Payment Integrity solutions.”
