Affiliated Computer Systems, a Xerox company, became one of the largest providers in the US of customer care services to the pharmaceutical, biotech and healthcare industries with the acquisition of TMS Health from private equity firm Palm Beach Capital.
Through TMS Health, a healthcare teleservices company, ACS will improve communication between pharmaceutical companies, physicians, consumers and pharmacists. By providing customer education, product sales and marketing, and clinical trial solutions, ACS builds on the IT and business process outsourcing (BPO) services it already delivers to the healthcare and pharmaceutical industries.
Proservartner Point of View: Xerox is entering the BPO market with an aggressive acquisition strategy. The latest acquisition follows the “game-changing” play by Xerox in acquiring ACS for $6.4 billion; and the strategic acquisition of the ExcellerateHRO from HP to enter the HR outsourcing space. Xerox is now identifying strategic acquisitions in specific markets to provide improved market share, capability and presence in a particular market.
The TMS Health acquisition is to increase its presence in the fast growing US Healthcare space. The attraction of the US Healthcare market was one of the key reasons for the ACS acquisition and together with the Insurance vertical, will continue to be a focus area for organic and inorganic growth.