Covansys expands government biz
- By Dibya Sarkar
- Jun 13, 2002
Covansys Corp., a consulting and technology services company, last week
purchased PDA Software Services Inc., which has built several state-administered
systems for a federally funded health program.
The $16.5 million acquisition of the software services company will
augment Covansys public-sector capabilities and expertise, according to
Harvey Levin, vice president of Covansys' state and local government division.
"On our side, we feel it's going to enhance our shareholder value,"
Farmington Hills, Mich.-based Covansys, which provides consulting to
25 states and numerous local governments, already offers health care technology
expertise in child support, child care and case management. A major focus
is in offering solutions to help governments comply with the Health Insurance
Portability and Accountability Act of 1996.
Covansys also does Web-based titling and registration in the transportation
area, handles unemployment insurance benefits, and is the largest provider
of public retirement benefits systems in the country.
"We grew to become a bigger part of the company's revenue last year,"
said Levin, referring to Covansys' public-sector practice.
PDA, which was a wholly owned subsidiary of Selective Insurance Group
Inc., has developed, implemented and maintained systems for at least 15
states and Washington, D.C., that are required to track people using the
Special Supplemental Nutrition Program for Women, Infants and Children.
Popularly known as WIC, the program provides food, nutrition counseling
and access to health services to low-income women, infants and children.
PDA's software verifies the authenticity, validity and payment of food
voucher checks after authorized vendors, such as grocery stores and pharmacies,
Levin said it's likely the company will find ways to use PDA's other
technology solutions, including a Web-based flood insurance business and
business process outsourcing, in its other public and private markets.
PDA, which has annual revenues of $18 million, has 180 total employees
at its headquarters in Overland Park, Kan., and offices in Atlanta and Indianapolis.
Covansys, a publicly traded company, has 4,400 employees in 23 locations
worldwide. It reported revenues of $404 million last year.