Verizon Information Technologies to Sell Part of Its Health Care Claims Processing Service to Infocrossing
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TAMPA, Fla. - Verizon Information Technologies Inc. (VITI) announced today that it has reached a definitive agreement to sell part of its health care claims processing service to Leonia, N.J.-based Infocrossing Inc. (Nasdaq: IFOX) for $43.5 million in cash.
The service to be sold processes claims for Medicare, Medicaid and managed care. Its approximately 170 employees, based in Jefferson City, Mo.; Phoenix, Ariz.; and Tampa, Fla., will continue to serve their customers after completion of the sale late this month.
The remaining VITI employees will stay with Verizon to form a new information technology services company to be called Verizon Information Technologies LLC. In making the announcement today, Harry A. Artz, president, outlined plans to increase market share by combining the capability of Verizon's advanced nationwide network with the new company's powerful IT capabilities.
The company, based in the Tampa area, will market data center hosting, managed IT services and combined telecommunication and IT solutions. It will continue to serve customers in the consumer financing, telecommunications, health care, overnight delivery and technology industries. In addition, the company's IT team will continue to work closely with Verizon's Enterprise Solutions Group, one of the country's leading providers of telecom services to enterprise customers.
Artz said the company plans to expand well beyond its current set of medium-to-large-sized business customers across 12 industries located nationwide and in 13 other countries -- and with annual revenue ranging from $5 million to $23 billion.
"Advances in IT over the next few years will be the primary driver to provide new services, customer care and business growth that our customers can achieve," Artz said. "Verizon Information Technologies will play a vital role in delivering the next generation of IT to the market. My vision is to enable innovative business transformation through partnership with our customers."
Verizon Information Technologies Inc.
Verizon Information Technologies Inc. is a wholly owned subsidiary of Verizon Data Services, a subsidiary of Verizon Communications Inc., a Dow 30 wireline and wireless communications company with approximately $68 billion in annual revenue. Verizon Data Services has more than 31 years experience in the development of telecommunications software solutions and management of information technology, across a variety of platforms and within a range of industries. By leveraging the skills of more than 7,000 IT professionals, Verizon Information Technologies provides OSS and BSS telecommunications software products, IT outsourcing services, transaction processing, network management, telecommunications software systems, and health care payer transaction processing and communications industry software. Verizon Data Services' eight data centers handle millions of transactions daily with industry-leading availability, reliability and security. For additional information, visit http://www.VerizonIT.com.