UST sells subsidiary HealthProof for more than $1 bn to Bain Capital

UST will sell healthcare unit HealthProof to Bain Capital for over $1 bn and use proceeds to expand AI, cloud transformation, and data modernisation platforms

IT services provider UST is selling UST HealthProof, a unit dealing with healthcare management solutions, to private equity firm Bain Capital for more than $1 billion to focus on more high-growth areas such as enterprise AI, cloud transformation, and data modernisation.

 

UST said new capabilities, including platform engineering, are reshaping the digital paradigm of its clients in healthcare, BFSI, and retail, and it wants to provide more solutions in those sectors. Proceeds from the sale will be used to develop new industry-leading AI-enabled platforms and vertical solutions.

 

UST, which has a sizeable presence in India, declined to comment on the deal value. HealthProof counts US insurers or payers among its major clients.

 

“Today’s announcement reflects both the strength of what we have built and the clarity of our vision for the future. This milestone allows UST to focus on the transformative technologies we lead in. It also ensures that UST HealthProof, with the backing of Bain Capital, can unlock new opportunities for growth and innovation,” Krishna Sudheendra, chief executive officer of UST, said in a statement.

 

As part of the deal, about 4,000 HealthProof employees will move over from UST into the ambits of the private equity firm. UST has about 30,000 employees in more than 30 countries, out of which more than 20,000 are based in India, with a majority in Thiruvananthapuram.

 

For Bain, this deal marks further expansion in the healthcare industry. It had bought HealthEdge, a US company in healthcare technology solutions from rival Blackstone earlier this year. As part of this transaction, UST HealthProof will combine with HealthEdge, creating one of the healthcare industry’s leading next-generation platforms for payers.