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Navigant Acquires EthosPartners

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Further enhancing its healthcare consulting practice, Navigant Consulting Inc. (NCI - Free Report) recently announced the acquisition of EthosPartners Healthcare Management Group Inc., a national healthcare consulting group.
Navigant has agreed to pay a total sum of $37 million, including $28 million in cash, $2 million in restricted Navigant stock and $7 million of deferred cash payments. EthosPartners can also earn up to $8 million more based on the future performance of the business.
EthosPartners specializes in physician and hospital alignment and focuses on physician practice operations and physician revenue cycle management. This is a unique combination of resources and capabilities. Thus, the combined company is expected to create synergies by offering a comprehensive portfolio of services in the rapidly changing healthcare market.
Additionally, EthosPartners brings 180 billable professionals, out of which 8 will take the position of Managing Director in Navigant and 85 of these professionals are experts in the revenue cycle outsourcing business. Most of them will join as practice leaders. EthosPartners’ physicians have rich experience in the field of practice management, revenue cycle management, business intelligence and strategic consulting services. This is further expected to strengthen Navigant’s healthcare provider expertise as well as its management team.
We believe the acquisition fits in with Navigant’s product portfolio and is in sync with its strategy as management identifies disputes, economics, healthcare and energy as key areas of long-term growth and subsequently aims to sharpen its investment focus within these practices. With the addition of EthosPartners, Navigant is anticipated to achieve its operational and performance goals and augment its earnings as opportunities associated with healthcare reform continue to drive demand.
In the past, the company has utilized acquisitions to build out its expertise in attractive industry segments. Most recently, in May 2010, Navigant acquired Daylight Forensic & Advisory LLC, an international financial consulting and investigative firm based in New York .
Based in Chicago , Navigant is a leading provider of specialized consulting services. The company’s staff comprises seasoned consultants and industry leaders, providing litigation support and investigative services, claims-management and analysis, corporate finance services, discovery services, government contracting services and operations advisory and management process outsourcing services.       
We have a Zacks #3 Rank (short-term Hold recommendation) on the stock.

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