Navigant (NYSE: NCI) announced today that it has acquired Cymetrix Corporation, a privately held revenue cycle management firm that specializes in providing outsourcing services to hospital and healthcare networks. The addition of Cymetrix’s approximately 600 business process outsourcing employees significantly enhances Navigant Healthcare’s existing physician revenue cycle outsourcing capabilities, which are offered through Navigant’s Alleviant subsidiary, and establishes Navigant Healthcare as a leading provider of end-to-end revenue cycle management services. The newly acquired company will operate as Navigant Healthcare Cymetrix.
Under the terms of the acquisition agreement, Navigant paid approximately $75 million in cash at closing to acquire 100% of the stock of Cymetrix and may pay up to an additional $25 million to the selling stockholders based on the acquired company’s achievement of certain post-closing performance targets.
“The acquisition of Cymetrix aligns with our strategic growth plans and is transformative for Navigant – creating new opportunities for us to evolve and expand our business platform beyond consulting services to incorporate more data analytics products, technology-enabled solutions, and operations outsourcing,” stated Julie Howard, Navigant Chairman and Chief Executive Officer. “These complementary and adjacent solutions extend the value we can bring to our clients from strategy and advisory services all the way through to execution. Moreover, the acquisition adds new recurring revenue streams with higher predictability and offers us a catalyst for accelerated revenue growth.”
Founded in 2001, Cymetrix is a national leader in providing healthcare organizations and hospital-affiliated physician practices with end-to-end revenue cycle outsourcing solutions. Cymetrix creates custom solutions that are designed to deliver sustained improvement in performance and profitability while ensuring the patient experience and hospital mission are served. Cymetrix Chief Executive Officer, Michael Halberda, will continue to lead the company’s day-to-day operations as part of Navigant Healthcare.
“Cymetrix’s client base spans more than 200 hospitals and health networks nationwide, and it is a leader in helping clients improve their operating margins while focusing on clinical care,” said David Zito, Managing Director and Navigant Healthcare segment leader. “Market forces like ICD-10 and the move toward a pay-for-performance system are placing new demands and extreme cost pressures on hospitals. The increasing complexity in the revenue cycle process will encourage healthcare providers to consider outsourcing to alleviate that aspect of administration. With the Cymetrix team, we are now able to offer our clients a premier option for devising the best strategy as well as implementation services.”