Barely four months into existence, AntWorks Pte. Ltd. (http://ant.works/) has made its first acquisition by taking over U.S.-based Benchmark Systems (http://www.benchmark-systems.com/) to make possible the development of leading-edge solutions that will advance patient care across the world.
Technology startup AntWorks and Benchmark Systems, a leading cloud-based Healthcare Application Services Provider, today announced that the Board of Directors of both companies have unanimously approved a definitive agreement under which AntWorks will acquire Benchmark Systems, which will generate $10 mln in revenue in the next 12 months.
Through the acquisition, AntWorks expects to play an even greater role in improving physician practices and ambulatory care globally and achieving greater levels of efficiency and reducing healthcare costs for its customers. The addition of Benchmark Systems significantly boosts AntWorks’ presence in the global healthcare solutions sector which is slated to touch $150 billion by 2020.
Healthcare providers in over 120 specialties and sub-specialties use Benchmark Systems’ integrated solutions on a daily basis and its suite of software has been built by leveraging 35 years of expertise in working with ambulatory healthcare providers to solve profitability and limited time issues.
Benchmark Systems will continue to operate as a standalone brand with integrated R&D activities with AntWorks’ existing infrastructure.
The healthcare industry is undergoing a major transformation due to the challenge of providing more cost-effective personalized care.
Majority of the demand for healthcare IT solutions is driven by the growing need to reduce healthcare costs while adhering to the regulatory requirements set by government organizations for ensuring safety, security, and confidentiality of patient information. The growing adoption of health information exchanges (HIEs) and electronic health records (EHRs) systems and improved quality of care and clinical outcomes are some other factors driving growth of the global healthcare IT market.
In addition to the demand for information technology solutions from healthcare providers, the growing need of healthcare insurance providers to efficiently manage an in-depth record of claims and reimbursements is also expected to contribute to the growth of the global healthcare IT market during the forecast years.
Management Commentary
Asheesh Mehra, Co-Founder and CEO of AntWorks, said, “We are at a stage in our life cycle where we are looking at platforms which could help us in going global. The opportunity to acquire Benchmark Systems is fantastic, not least because of the highly scalable cloud based solutions which the company has developed, but also the strong platform the company offers for growth in terms of talent, clients, geographic footprint and offerings.”
Mr. Mehra continued, “The potential is apparent — especially with the growing requirements from medical practices — and Benchmark Systems’ operational ability, coupled with AntWorks’ engaged customer base, bring tremendous scale to this space.”
He added, “AntWorks will now be able to offer a fully integrated suite of leading edge technology solutions including Patient Portal, Scheduling, Electronic Health Records, Practice Management, and Revenue Cycle Management at a price point that is affordable to solo physicians and large group practices.”
Govind Sandhu, the CFO, said, “AntWorks expects the acquisition of Benchmark Systems to be immediately accretive to AntWorks’ adjusted gross and EBITDA margins. Benchmark Systems’ strong cash flow will help AntWorks to generate $10-$12 mln in revenues in the next 12 months of operations.”
Mr. Mehra concluded by saying, “AntWorks’ ability, fresh and global approach to connect supply and demand at scale sets us up well to grow even faster and expand in our targeted local and global markets.”
Strategic Benefits of the Acquisition
Significantly Increases AntWorks’ Size and scale: Paired with AntWorks, the deal creates a global healthcare sector solutions provider of significant size and scale.
Immediately Accretive to AntWorks’ Adjusted Gross: The strategic acquisition will allow AntWorks to reach out to Benchmark Systems’ 400 strong customer base across the 40 states of the U.S.
Creates Premier Global Healthcare Solutions Company Focused on Improving Clinical and Economic Outcomes: With the complimentary product portfolios of AntWorks and Benchmark Systems, the company will have enhanced customer relevance and a strengthened competitive position.
Creates Stronger, More Diversified Platform to Drive Growth: Benchmark Systems provides services ranging from the initial set up to training, ongoing support, and maintenance services, and offers a full billing and collections outsourcing platform. Benchmark also offers auditing and comparative benchmarking of key metrics against other practices of the same size and specialty. Furthermore, combined entity’s enhanced breath of resources will enable it to further invest in its R&D programs and pursue additional opportunities.
Creates Additional Opportunities for Employees: A combined AntWorks and Benchmark Systems will result in a significantly larger global company with presence in over six countries across three continents, delivery centers in two countries and over 400 employees around the world. Employees in the combined company are expected to have more opportunities to pursue careers across a larger, more diversified global business.
ABOUT ANTWORKS:
Set up in 2015, AntWorks is a Singapore based Business Process Management (BPM) and Technology firm specializing in providing solutions primarily to the Financial and Healthcare sector through two delivery models – BPaaS & TaaS . The company has a global presence with its offices in the USA, Philippines, Qatar, London, India and Singapore. The company has delivery capability out of Pune, India and Virginia, USA with 300 healthcare and financial services professionals servicing 400+ customers currently with a much larger seat capacity.
Founded by technology and outsourcing veterans Asheesh Mehra and Govind Sandhu, the USP of the company is being Fresh, Fearless, and Fast in its customer approach. Driven by the principle of customer first, the mission statement of this firm is to maintain Zero Distance from customers which enables faster and fearless delivery of fresh technology and business process, making the company an integral part of the customer’s organization.
ABOUT BENCHMARK SYSTEMS:
Benchmark Systems is a nationally recognized and leading Healthcare cloud-based Application Services Provider (ASP). The Company offers a fully-integrated suite of leading edge technology. solutions, including Patient Portal, Scheduling, Electronic Health Records, Practice Management, and Revenue Cycle Management at a price point that is affordable to solo physicians and large group practices. Benchmark’s suite of software was built by leveraging 35 years of expertise in working with ambulatory healthcare providers to solve profitability and limited time issues. Healthcare providers in over 120 specialties and sub-specialties use Benchmark’s integrated solutions on a daily basis.
Benchmark’s products can be installed on a practice’s server or hosted remotely (SaaS) at Rackspace, one of the largest independent hosting facilities in the U.S.
Benchmark’s solutions include both software and services that are tailored to meet the specific needs of each individual medical practice. Benchmark provides services ranging from the initial set up to training, ongoing support, and maintenance services, and offers a full billing and collections outsourcing platform. Benchmark also offers auditing and comparative benchmarking of key metrics against other practices of the same size and specialty, a service not typically offered by its competitors.
Benchmark continues to invest in products year after year. Those products are now completed and in use by Benchmark’s clients. One of the ongoing revenue opportunities is to convert the existing client base to the new platform.
