Pegasystems is to acquire 1mind Corporation, a privately-held provider of CRM and e-business solutions for healthcare payer and insurance companies.
The transaction will be structured as a purchase of 1mind's assets for shares of, and warrant for, Pegasystems' common stock valued at approximately $3.6 million dollars. Up to approximately $6 million of additional Pegasystems' stock may be issued in 2003, as additional consideration.
Pegasystems says that the acquisition will increase its penetration of the healthcare and insurance markets, strengthen its management and delivery teams and deepen its product offerings - particularly in the delivery of claims exception processing services.
The integration of the two companies will result in Pegasystems substantially increasing its Blue Cross Blue Shield customer base. Upon closing the acquisition, Pegasystems will count approximately eighteen-percent of the Blue Cross Blue Shield health insurers as clients.
Tom Congoran, president of 1mind and former COO of Blue Cross Blue Shield of New Hampshire, will join Pegasystems as the leader of its newly formed healthcare and insurance business unit.