Cognizant Technology Solutions is expecting an incremental revenue loss of around $100 million in the second half of 2015 following the announcement that its client Health Net will be acquired by Centene Corporation.

The company has, however, reaffirmed its guidance for the year due to continued strong demand and projected over-performance in other parts of its business. “Today’s announcement by Health Net will not impact our ability to achieve our goals for the year,” said Karen McLoughlin, Chief Financial Officer, Cognizant, in a release.

Key partner The firm remains a key technology and operations partner to Health Net, with the existing relationship being extended through the end of 2020 with a total contract value of around $520 million.

This will provide ongoing support of critical Health Net applications and processes, says the release. However, the planned implementation of a seven-year master services agreement for end-to-end administrative services between Cognizant and Health Net, first announced in August 2014 and scheduled to begin in mid-2015, is being deferred while Health Net and Centene complete the merger review and approval process, the release added.

Cognizant expects that if the merger is completed, the existing master services agreement will not be implemented as there will likely be overlaps in services and capabilities planned to be provided by the company.

It has negotiated the right to license certain Health Net intellectual property for incorporation into its healthcare management solutions and as-a-service platforms, the release said.

2015 Outlook Cognizant on Thursday reaffirmed its fiscal 2015 guidance, previously stated on May 4.

Revenue is expected to be at least $12.24 billion, the release said.

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