CitiusTech grows its payer services business with SDLC Partners acquisition

private equity investment
Healthcare tech services company CitiusTech's purchase builds upon substantial revenue growth it's seen across its payer business over the last year. (Natee Meepian/Getty Images)

Healthcare technology services provider CitiusTech has acquired SDLC Partners in a bid to flesh out its payer-focused offerings.

The terms of the deal were not disclosed.

Founded in 2004, Pittsburgh-based SDLC and its 350-plus employees deliver technology transformation, consulting and automation services that are increasingly in demand among payer organizations, CitiusTech wrote in an announcement this week.

“Payer organizations are leaning heavily on digital capabilities and innovative technology solutions to enhance quality of care, member experience and overall performance,” Bhaskar Sambasivan, president of CitiusTech, said in a statement. “Our investment in SDLC is another step towards helping payers accelerate their transformation to value-based, member-centric operating models.”

While its customers span multiple industries, SDLC has direct experience helping payers and providers develop data strategies and automate front- and back-end processes.

The purchase of SDLC also includes CyLumena, a cybersecurity firm launched by the Pittsburgh company in 2017.

CitiusTech is an international company with offerings split across payer, medtech, provider and life sciences markets. Alongside business and technology strategy consulting, its assorted services help healthcare organizations tackle data interoperability, quality analytics, enterprise application design and deployment alongside other tech-based challenges.

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The company said it has seen substantial revenue growth this year across its payer business, which includes platforms for member engagement, analytics and quality rating optimization.

In the announcement, leaders from the companies said bringing together each group’s products and consulting expertise will better position CitiusTech to support health plans in search of digital transformation support.

“SDLC brings proven capabilities and very talented team members with deep expertise, manifesting in the solutions we are known to deliver for clients,” Chris Simchick, CEO of SDLC Partners, said in a statement. “Combining this with CitiusTech’s industry presence and its rich portfolio of complementary digital offerings gives us the ability to broaden our access to payer markets, compete and win larger opportunities and move front and center in our customer’s digital transformation strategy.”

Many health plans that are working to overhaul their digital offerings could be open to external guidance. According to a recent Deloitte survey, several larger plans have had trouble prioritizing digitalization projects and generally lack a clear long-term vision for modernizing their technology platforms.