Jhunjhunwala Family-Backed IKS Health Acquires US-Based AQuity Solutions for  INR 1,600 Cr

The acquisition valued at $200 million (about  INR 1,600 Cr) was financed partially through INR 1,000 Cr loan from three major banks and the rest from internal funds.

IKS Health, a healthtech platform supported by prominent investor Rakesh Jhunjhunwala’s Rare Enterprises, has acquired US-based AQuity Solutions, a tech-enabled clinical documentation and revenue integrity solutions company. 

The acquisition valued at $200 million (about  INR 1,600 Cr) was financed partially through a  INR 1,000 Cr loan from three major banks and the rest from internal funds.

The primary objective behind this acquisition was to bolster their workforce and resources. 

Sachin K Gupta, the founder and CEO of IKS Health, mentioned the aim to recruit an additional 50,000 resources over three years, supplementing the current team strength of 14,000. The combined revenue of IKS Health and AQuity stands at approximately  INR 2,700  Cr.

Gupta highlighted the significance of enhancing patient care by reducing administrative burdens in the healthcare system. He said, "The core aim is to revitalise the clinician-patient relationship and ensure financial success for our partners.”

AQuity’s substantial datasets provide a valuable opportunity for IKS Health to expedite the development of its AI solutions, with a specific focus on Reinforced Learning Through Human Feedback. Furthermore, their cloud-based platform, compliant with the US healthcare laws, integrates seamlessly with Electronic Health Record systems.

Commenting on the same, Kashyap Joshi, CEO of AQuity, said, "Our combined capabilities will offer practical and tested solutions across the care spectrum, promoting better patient experiences and financial stability for healthcare institutions."

Founded in 2006 by Sachin K Gupta, IKS Health is a platform that offers health systems clinical, financial and administrative solutions with the goal of improving operational efficiency, better patient outcomes, optimised productivity, and revenue.
IKS Health's acquisition of AQuity Solutions aligns with its recent investments in technological advancements, including Abridge, a generative AI platform, and Sift Healthcare, a predictive analytics solution for revenue cycle management.

The recent acquisition aligns with the latest trend in the industry. For instance, Zydus Lifesciences Limited, a pharmaceutical company from Ahmedabad, also concluded an acquisition of the UK-based LiqMeds Group. This strategic move is part of a trend where companies are looking to expand their reach and strengthen market positions.

Moreover, Quality Care (QCIL), supported by Blackstone, completed an acquisition of KIMS Health Management (KHML), a prominent hospital chain in Kerala, India. Valued at INR 3,500  Cr (approximately $400 million), this acquisition reflects the continuous evolution and consolidation within the healthcare sector.

As part of the deal, QCIL is set to hold the majority stake in KIMS, allowing the founder, Dr MI Sahadulla, to retain a significant stake and maintain leadership in the hospital business.