Dedalus Takes Over DXC's Healthcare Provider Business for $450M

Dedalus Takes Over DXC's Healthcare Provider Business for $450M

Healthcare Tech Outlook | Monday, April 26, 2021

Through the acquisition of DXC, Dedalus has proven that it has deep pockets and is willing to scale up its customer base through inorganic growth.

FREMONT, CA: Dedalus completes the purchase of DXC’s healthcare provider business for $450M a deal that was originally announced in July 2020. DXC was created in 2017 through the merger of CSC and the Enterprise Services business of Hewlett Packard Enterprise (HPE). Dedalus has been through a quick acquisition program over the last ten years, taking over a majority position with France-based Medasys/Noemalife in 2016 and then acquiring the EHR and integrated care business of Agfa Health the end of 2019. The combined entity will become the biggest EHR vendor in Europe, with a footprint that also spans MEA, Asia, and Latin America.

The major challenge for the new entity will be how it can optimize and integrate a now extremely bloated portfolio. Dedalus now requires focusing on rapid legacy solution retirement while transitioning customers to the latest centralized platforms. At the same time, they are not upsetting customers or losing business to others. In no way an easy task. Despite these challenges ahead, the combined entity does mean that Dedalus will have an international footprint that few other EHR vendors can match. Further, with combined 2020 EHR revenues predicted to be approximately $600M, no other European EHR vendor will be close in terms of EHR business size.

The acquisition of Agfa’s EHR business helped the firm market pioneer in the acute EHR market in the DACH region (Germany, Austria, and Switzerland) while assisting in cementing its market leadership position in France and bolstering its position in Benelux and Latin America, especially Brazil. The firm’s EMEA operation's combined revenue will now see Dedalus take the number one spot in terms of EMEA market share, specifically after Cerner’s German and Spanish operation sale to CompuGroup Medical decreased the size of Cerner’s EMEA business.

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