Exela Technologies (XELA) - Get Exela Technologies, Inc. Report more than tripled on Tuesday after the transaction-processing-software company unveiled a 10-year $90 million contract with a major U.S. health insurer.
The client wasn't identified. The company said the deal will speed the insurer's digital transformation. And it built on a relationship that generated more than $28 million of revenue for Exela in 2020.
Exela said the deal would blend automation technologies, software as a service, and other services through its PCH Global platform, which it launched in September.
This venture, Exela said, is its first in the healthcare industry to require the large-scale deployment of its digital exchange platform, PCH Global, "in the cloud and onsite to deliver health-care solutions."
“Our goal has been to set ourselves apart by developing PCH Global as a complete payment integrity solution for the insurance industry, handling everything from claims ingestion and validation, to correspondence, adjudication and payments," President Suresh Yannamani said in a statement.
At last check Exela stock was trading at $4.28, compared with the Monday close at $1.65. The shares have traded on Tuesday at as much as $5.50. They traded at 26 cents a bit less than a year ago.
Trading volume was approaching 400 million shares, more than 85 times the 65-day average volume of 4.6 million, according to Wall Street Journal calculations.