9 Top Attractive M&A Targets in Federal Health IT

By Eric Klos, Managing Principal, HealthTechture, LLC

With the fiscal year rapidly coming to a close and a new administration on the horizon, Merger and Acquisition activity continues unabated in this dynamic Federal Health IT sector, as companies position for the future. Whether it is the desire to obtain strategic contract vehicles, gain access to new agencies or simply to expand expertise and capabilities in key growth areas, such as; analytics, interoperability, or cloud and cybersecurity, the M&A trend is not expected to slow in the near future. Included below are several companies who have made great strides in Federal Health IT, and as such, will be attractive targets.

The criteria used for assessment includes:

  • Unique capabilities in Health IT, both technical and functional
  • A large and diversified footprint across the Federal Health IT sector
  • Prime access to Health IT Contract vehicles (GWACs, IDIQs, BPAs)
  • An experienced executive leadership team
  • Key certifications and partnerships
  • Healthcare domain expertise
  • Brand Recognition within the Federal Health IT market
  • Proven Business Development Team

** Note: Inclusion on the list does not reflect interest on the part of these companies in being acquired. These firms simply have attributes that make them attractive M&A targets.

With a $22.3B ceiling, the 10-year Veterans Affairs Transformation Twenty-One Total Technology Next Generation (T4NG) IDIQ is one of the more exclusive and valuable contracts on the market. Knowing this, the VA purposefully inserted clauses intended to limit some of the early selling of small business award winners. However, two of the small SDVOSB primes awardees, The BITS Group and TISTA, are believed to have been awarded a T4NG contract under the unrestricted category, thus allowing these to sell without limitations. As such, both firms vault to the top of the target list for many potential buyers.

Business Information Technology Solutions, Inc.

The BITS Group is an up and coming SDVOSB that gained traction on key contracts at VA including several task orders via the set-aside IDIQ, VA ADVISOR.  Recognized early on by many as one of the Top Small Businesses Leading the Way in Federal Healthcare Interoperability and as a Small Business with Clinical Chops, the award on VA T4NG was expected by many. Led by President and CEO, Dan McQuay, and an experienced growth and business development team that includes Todd Van Haaren and Josh Temkins; The BITS Group is well positioned to have early success on T4NG.

TISTA Science and Technology Corporation

In addition to being an attractive M&A target due to their prime award on VA T4NG, this SDVOSB and 8(a) landed a prime spot on the $25B Centers for Medicare & Medicaid Services SPARC IDIQ as both a small business awardee and one of 7 in the SDVOSB category. Earlier this year, TISTA added experienced Industry Veterans to their team: Roger Sam to lead business development at VA, and Stacey Donald to serve as VP over Veteran Affairs and Health Programs. TISTA has consistently proven their willingness to make the investments necessary to support growth efforts.

Two other large VA T4NG Primes are likely to draw early attention based on their size, contract vehicles, key personnel, and growth trajectory.

Information Innovators, Inc. (Triple-i)

One of the original SDVOSB awardees on VA T4, Triple-i has experienced rapid growth. Not only did they win their fair share of VA T4 task orders, but they have done an excellent job of expanding their footprint outside of Veterans Affairs. Some of this growth is due in part to key acquisitions, such as the additions of a former T4 large prime, CCSI, as well as a FDA mainstay, GlobalNet Services, Inc. (GNSI). Triple-i has also made strategic hires, like the recent addition of former HHS and FDA CIO, Melissa Chapman, to serve as Vice President of Business Development and Capture. In addition to securing a prime spot on VA T4NG, Triple-i recently added a prime award on the $25B CMS SPARC IDIQ and a $100M single award BPA to support FDA…

 

Read More in the Summer 2016 Issue of FedHealthIT Magazine.

 

About the Author: Eric Klos is the Managing Principal of HealthTechture, a business consulting firm providing strategic planning, marketing development, and competitive intelligence to Federal Health IT firms. Eric applies vast knowledge of the market in specific analysis around solution offerings, agencies, and competition. He thrives on positioning companies to seize new business in Federal Health IT. Eric is a frequent contributor to G2Xchange and FedHealthIT as both a Health IT SME and Advisor. 

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