Silicon Valley-based capacity optimization software leader LeanTaaS has wrapped up its acquisition of automation company Hospital IQ for a deal that, although financial terms were not officially disclosed, is said to create a company with a combined value of more than $1 billion. The deal comes roughly half a year after Bain Capital threw its hat into the ring to help LeanTaaS with growth capital, in turn picking up a majority stake.
The merger of these two powerhouses in clinical optimization creates what could be the largest AI-fueled entity in the industry. Given that health systems are universally dealing with intense financial pressure and labor crises, the timing of this deal is practically kismet. “[Hospital IQ] is bringing a complementary set of capabilities for workforce and staffing optimization. So for a medical appointment to happen, both the asset and the staff needs to be available. If you think about optimizing both, it makes our joint solution even more powerful,” said LeanTaaS Chief Operating Officer Sanjeev Agrawal.
The acquisition decision came about when Agrawal realized that the two companies’ portfolios complement each other, and the amalgamation of quality staff and asset optimization solutions presented an excellent opportunity for synergy. The fusion also saved LeanTaaS from having to develop its own software, akin to YouTube’s buyout by Google in 2006 — when despite the existence of Google Video, the Alphabet subsidiary realized that the more advanced platform offered by YouTube would save it a fair amount of development trouble.