Electronic Health Reporter

NTT DATA Services announces that it has acquired Cognosante Consulting, LLC, the consulting division of Cognosante. Cognosante Consulting provides IT strategy, planning, quality assurance and project management for state HHS agencies undergoing large-scale Medicaid and related human services IT and business transformation programs. The company has nearly three decades of experience working with 48 states and the federal government, developing, managing, and executing large, complex health information technology implementations.

As a result of the acquisition, NTT DATA Services will add more than 250 specialized consulting resources, as well as intellectual property currently supporting IT transformations, including those specific to Medicaid in more than 20 states.

“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.”

“Cognosante Consulting has built an unmatched reputation supporting IT projects for state HHS departments and other state agencies. 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.”

As part of NTT DATA Services, the consulting practice will be focused on client IT strategy, project management, quality assurance and Independent Verification and Validation services.

“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 percent since 2010. This growth of scope and reach, however, began to create conflicts with Cognosante’s core business, requiring us to look for divestiture opportunities.

“We could not have found a more perfect home than NTT DATA Services to align with Cognosante Consulting’s overall mission and company culture. Both Cognosante Consulting clients and employees will benefit tremendously from this combination. We are confident NTT DATA Services will take Cognosante Consulting to the next level while Cognosante continues to focus on its core mission of transforming the nation’s healthcare through innovative technology and solutions.”