Healthcare Triangle, Inc. (HCTI) completed the acquisition of substantially all of the cloud and technology domain business, assets, and operations of SecureKloud Technologies, Inc. in October 2024. This strategic move is aimed at expanding HCTI's capabilities and market presence within the specialized Healthcare and Life Sciences (HCLS) IT market.
The integration of SecureKloud's pre-existing contracts, which were negotiated at lower rates, initially resulted in a compression of HCTI's gross margins. However, management anticipates that this will be a temporary headwind, with profit margins projected to increase materially in the coming quarters as new, higher-margin contracts are negotiated.
This acquisition aligns with HCTI's strategic pivot towards recurring revenue models, enhancing its ability to offer comprehensive cloud services and digital transformation solutions. The expanded business is expected to contribute to HCTI's long-term revenue growth and strengthen its competitive position in the HCLS industry.
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