Houston-based Constellation Healthcare Technologies said it has has acquired PPP, a New York-based collection of revenue cycle management businesses for a maximum cash consideration of up to $20 million, subject to the fulfillment of certain revenue and earnings targets being met over a 24 month period.
The acquisition provides Constellation with a foothold in the strategically important locations of New York, New Jersey and Florida, according to the company.
PPP is a holding company of three operating subsidiaries. It provides revenue cycle services to healthcare providers and has approximately 100 clients across its group.
Constellation expects to generate cost savings of approximately $2 million during the current financial year as it streamlines operations after the merger.
This is the first acquisition by Constellation since its successful IPO on the London stock exchange in December 2014.