June 16, 2017

Cognizant, Wipro Announce Acquisition Of TMG Health, Drivestream, Respectively

Cognizant, Wipro

On June 13, IT services firms Cognizant and Wipro declared the acquisition of TMG Health (a BPO services provider) and Drivestream (an IT consulting firm), respectively. TMG Health is a subsidiary of Health Care Service Corporation (HCSC).

Cognizant stated that "TMG Health will (now) enter into a new, expanded multi-year service agreement to continue providing IT, business process and other services to HCSC's various operating units and subsidiaries."

Cognizant further added that the transaction is expected to close in the third quarter of 2017.

In this regard, Susan Rawlings Molina, TMG Health President and CEO, said that "Government business lines are expanding, and more payers, big and small, are entering the market. We believe there is a growing opportunity."

On the other hand, India's third largest software services firm Wipro has invested $809,690 in Drivestream (a management and IT consulting firm), the company said.

Wipro said that cash consideration will see Wipro acquiring 19,679 preferred stocks and 27,865 common stocks. At present, Wipro holds 26.1% share in Drivestream (on a fully diluted basis), the company added.

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