New Delhi, May 8 -- Infinx Services Pvt Ltd, a healthcare revenue cycle management (RCM) solutions provider owned by Tandon Group, will acquire the healthcare RCM business of Nasdaq-listed i3 Verticals Inc, including its proprietary technology, in a bid to expand its market presence in the segment.

Infinx, which has offices in Mumbai and Cupertino, California, will acquire the financial lifecycle business from enterprise software provider i3 for $96 million (Rs 821 crore). i3 said it will provide further details on the transaction on Friday.

The acquisition will boost Infinx's market presence and broaden its customer base to include academic medical centers and other large provider groups, according to a statement. The acquisition aligns with its long-term plan to incorporate technology with expert services across all stages of the revenue cycle.

Speaking on the development, Greg Daily, chairman and CEO of i3 Verticals, said, "Scale is important in revenue cycle management, and our future is in providing enterprise software solutions in other markets. We found a great partner, and our healthcare management team will be well positioned to accomplish great things with Infinx."

Daily added in a separate statement that the company will focus on its public sector vertical, including the K-12 public education markets, which has a high growth potential and will "allow us to bring our customers the best possible service". i3 creates software for specific needs of public and private organizations.

Infinx, founded in 2012 by Sandeep Tandon and Jaideep Tandon, provides data-driven revenue cycle management solutions for the healthcare sector, primarily focusing on the US market. It operates cloud-based software used by consultants and billing specialists across the US, India, and the Philippines.

According to VCCEdge, the data intelligence platform of VCCircle, Infinx reported revenue from operations of Rs 880 crore in the year ended March 2024, up nearly 50% from Rs 585 crore in the previous financial year. Its net profit grew more than 11x in FY24 to Rs 116.5 crore from Rs 10 crore the previous year.

US private equity firm KKR & Co acquired a minority stake in Infinx last year in a deal valued at around $150-200 million, as reported by VCCircle. Norwest Venture Partners also increased its investment in the company.

Published by HT Digital Content Services with permission from VC Circle.