NTT Data Moves Into Health Care With Acquisition

April 02, 2019, 04:25 PM EDT

NTT Data Services said it purchased a Virginia-based health IT firm’s consulting business as it plunges headfirst into the public health care industry.

The Plano, Texas-based division of Japan’s NTT Data Corp. said it acquired Cognosante Consulting LLC, a division of Cognosante. Terms of the deal were not disclosed and neither company responded to requests for comment.

“The acquisition of Cognosante’s consulting practice immediately establishes us as a leader in a growing health and human services market and enhances the value we can deliver to our clients in the public sector and healthcare,” said Bob Pryor, CEO, NTT Data Services. “This acquisition is the latest in our ongoing strategy of growth by strategic acquisitions that augment our specialized industry expertise and geographical presence.”

Now that it is folded into NTT Data Services, the consulting practice will be focused on client IT strategy, project management, quality assurance and independent verification and validation services, the company said.

“Cognosante Consulting has been one of the building blocks of Cognosante,” said Michele Kang, founder and CEO of Cognosante. “We are extremely proud of what we have accomplished for our clients, while also increasing both top line revenue and the number of employees by about 500% since 2010.”

NTT Data is one of the world’s largest solution providers with more than 118,000 employees and headquarters in Tokyo.

Last October, NTT Data acquired Sierra Systems in order to increase its North American presence. Sierra Systems, out of Vancouver, B.C., has a full range of IT consulting, systems integration, and application managed services across Canada, according to the company. Founded in 1966, Sierra Systems has 700 professionals and has developed deep expertise in its targeted industries to strengthen organizations’ operational performance.

Cognosante’s work within healthcare systems for state agencies and NTT Data’s portfolio of IT resources and expertise, will support the mission of transforming Medicaid and related human services, NTT Data said in a statement.

“Combining our team with the resources and expertise of NTT Data will enhance our ability to serve clients as they continue to modernize their IT systems to support business transformation,” said Jim Joyce, General Manager of Cognosante’s consulting practice, who will continue to lead the organization and serve as Senior Vice President with NTT Data Services. “As states revamp their legacy systems and business models, there is significant opportunity for NTT Data. We are excited to be part of their long-term strategy to support successful state IT implementations.”

NTT Data said it hopes that the combined business will leverage NTT’s global experience to become a “vast repository of innovations” that will ultimately give way to new insights and important lessons learned in order to improve the state healthcare IT portfolio in the US.

NTT Data brings Cognosante Consulting its size, financial backing, and more than 120,000 professionals working on consulting and services capabilities for customers around the world.

O’Ryan Johnson

O’Ryan Johnson is a veteran news reporter. He covers the data center beat for CRN and hopes to hear from channel partners about how he can improve his coverage and write the stories they want to read. He can be reached at ojohnson@thechannelcompany.com..