Dallas-based T-System Inc., a healthcare IT company specializing in episodic care, will be acquired for $200 million in cash by Jacksonville, Fla.-based FNFV Group, an investment firm that’s part of Fortune 500 company Fidelity National Financial Inc.
T-System works to improve clinical encounters in 40 percent of the country’s hospital-based emergency departments, freestanding emergency centers, and urgent care centers. It employs about 300 people, one-third of whom work at its Dallas headquarters. T-System told D CEO Healthcare its headquarters and its 100 employees will remain here.
The company is the first healthcare technology investment for FNFV. According to T-System, the transaction is beneficial as it “creates significant new opportunities for T-System and its customers, employees, and vendor partners.” Roger Davis, CEO of T-System, told D CEO Healthcare the companies entered into talks late last year and “went through a normal sales process guided by TripleTree, an investment banking firm.”
William Foley, chairman of Fidelity National Financial, said in a statement the acquisition will generate significant future value for its shareholders. He believes T-System is “at an inflection point with a significant near-term organic growth opportunity. We are also confident that we can assist T-System in making multiple acquisitions that can accelerate future growth and further expand the products and services that the company offers to its customers.”
Added Davis: “I think what’s exciting is that we, as a Dallas-based company, are based in Dallas and hitting a 20-year legacy and having remarkable success. With this new backing by a Fortune 500 company, we’re able to accelerate both our organic processes, with our original business model, and inorganic processes to further our business.”