GovCIO to acquire Iron Bow's telehealth subsidiary

GovCIO has agreed to acquire a subsidiary of Iron Bow Technologies that helps the Veterans Affairs Department run a telehealth program serving approximately 4 million constituents.

SoldierPoint Digital Health is the prime contractor for VA’s Connected Care Integrated Network, a potential $1.4 billion contract awarded in late 2023 for systems engineering and integration work in support of VA’s larger telehealth efforts.

Through this transaction announced Wednesday, GovCIO will inherit CCIN and plan to apply its experience in both low code/no code software and artificial intelligence for future work on the potential seven-year program. VA has obligated approximately $191.6 million in order volume against CCIN to-date, according to GovTribe data.

GovCIO will also add roughly 300 employees from SoldierPoint, which posts around $200 million in annual revenue. All parties involved expect to close the transaction in the third quarter, pending regulatory approvals and other closing conditions.

Financial terms of their agreement were not disclosed.

“This is an excellent opportunity to work directly with veterans and help them receive top of the line healthcare remotely and we are looking forward to welcoming SoldierPoint’s team and working together with our new teammates to offer additional care solutions for our veterans,” Kristin Gill, president of GovCIO’s veterans and enterprise technology solutions sector, said in a release.

GovCIO acquired Salient CRGT in 2021 and has since become a 3,300-employee company with roughly $1 billion in annual revenue. Private equity firm Welsh, Carson, Anderson, and Stowe has owned GovCIO for just shy of five years.

Iron Bow stood up the SoldierPoint entity to focus exclusively on digital health offerings for VA, which started its main telehealth program in 2010.

By selling SoldierPoint, Iron Bow gains more resources to invest in its technology solutions businesses that include work across areas such as cybersecurity and cloud computing. Iron Bow also touts IT modernization and artificial intelligence as in the company’s strategy.

“The divestiture positions Iron Bow to accelerate its efforts in its core business at a time when markets are in transition,” Iron Bow’s chief executive Rene LaVigne said in a release. “In essence, we’re both sharpening our focus to deliver even greater value to our customers and the marketplace."

Jefferies acted as exclusive financial adviser to Iron Bow and SoldierPoint on the transaction with GovCIO.