HLTH, a provider of health information services, Tuesday agreed to sell its ViPS segment to General Dynamics IT, a wholly owned subsidiary of General Dynamics, for $225 million in cash.
The Towson, Md.-based ViPS segment provides healthcare data management, analytics, decision-support and process automation solutions and related IT services to governmental, including CMS, Blue Cross Blue Shield and other commercial healthcare payors to reduce healthcare costs and claims fraud, increase customer satisfaction and improve patient outcomes, the Elmwood, Park, N.J.-based HLTH said. ViPS has approximately 600 employees.
The transaction, which has been approved by the boards of directors at General Dynamics of Falls Church, Va., and at HLTH, is subject to normal regulatory approvals and is expected to close in 2008. ViPS will become part of the General Dynamics Information Technology business unit.
The company said the closing is subject to customary closing conditions, including the expiration of termination of the waiting period under the Hart-Scott-Rodino Act, a Federal Trade Commission Act.