Cognizant entered into a definitive agreement to acquire TMG Health, a subsidiary of the health insurer Health Care Service Corp.
TMG Health provides business process services to the Medicare Advantage, Medicare Part D and Managed Medicaid markets. Cognizant aims to strengthen its solutions for the government and public health program markets through the TMG Health acquisition.
Under the agreement, TMG Health will also enter into a multiyear service agreement to continue providing IT, business processes and other services to Health Care Service Corp.'s operating units and subsidiaries.
Officials expect to close the transaction during the third quarter of 2017. Once closed, TMG Health's healthcare business and technology professionals will become employees of Cognizant.
The financial details of the transaction were not disclosed.