Veeva Systems Inc. (VEEV - Free Report) recently inked a deal to acquire Crossix Solutions. The buyout is likely to enable the company enhance its cloud-based software technology. Moreover, the deal reinforces Veeva Systems’ presence in the healthcare IT (HCIT) space.
Notably, Crossix — a pioneer in privacy-safe patient data and analytics — will continue to operate as an independent business unit.
Financial Details of the Acquisition
Veeva Systems is set to acquire Crossix for a purchase price of $430 million in an all-cash transaction. Additionally, few employees of Crossix will receive long-term equity retention grants amounting to about $120 million in total. The buyout is anticipated to get completed in November this year.
Veeva Systems is likely to leverage Crossix’s analytics platform, which connects health and non-health data for more than 300 million U.S. patients, and provide improved patient outcomes. The buyout is the right step forward for Veeva Systems as it will take the company closer to its goal of a patient-centric healthcare system.
Moreover, the company’s cloud-based software technology is likely to get a boost on the back of this buyout.
Veeva’s Cloud-Based Software Technology Update
Veeva Systems recently released its advanced Veeva Commercial Cloud offering, Veeva CRM Engage Webinar, at the Veeva Commercial Summit Europe. The company also released Veeva Vault PromoMats Brand Portal — a new digital asset management capability that helps brand managers create portals, organize and showcase content within Veeva Vault PromoMats.
Market Holds Promise
Per a report by Medgadget, the Global Healthcare Analytics market is valued at $20.86 billion and is estimated to hit $108.01 billion by 2025 at a CAGR of 26.5% from 201-2025. Increasing pressure on the healthcare providers to boost the efficiency of healthcare and improvement in the patient’s outcome is expected to fuel market growth.
Some other key players who have showed substantial progress in the healthcare analytics space are Cerner Corporation (CERN - Free Report) , Allscripts Healthcare Solutions Inc. (MDRX - Free Report) and McKesson Corporation (MCK - Free Report) .
Cerner is one of the largest pure-play HCIT companies and its broad presence, large reference-able client base and composite array of solutions make it an ideal candidate for investors seeking an exposure to the HCIT industry.
Allscripts Healthcare provides information technology (IT) solutions and services to healthcare organizations. Moreover, Allscripts Sunrise is a fully integrated Electronic Health Record (HER) platform that connects all clinical and financial aspects of a hospital or health system for inpatient, emergency and outpatient care.
McKesson is a health care services and information technology company. Following a merger agreement with Change Healthcare Holdings, which is a leading provider of software and analytics, network solutions and technology-enabled services, McKesson formed a new healthcare information technology company called Change Healthcare. The new company aspires to be a better healthcare system on the back of a broad set of complementary capabilities that will deliver wide-ranging financial, operational and clinical benefits to payers, providers and consumers.
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