UST divests healthcare IT unit to focus on AI, cloud

IT services firm UST on Thursday has agreed to sell its healthcare management solutions unit, UST HealthProof, to private equity firm Bain Capital for over $1 billion, in a move that will allow the IT company to sharpen its focus on faster-growing areas such as enterprise AI, cloud transformation, and data modernisation.

The California-headquartered company, which has a significant India presence, said it plans to channel proceeds from the deal into building AI-enabled platforms and vertical industry solutions. It is also betting big on platform engineering, which it said is reshaping the digital paradigm for clients across healthcare, banking and financial services, insurance, and retail.

“Today’s announcement reflects both the strength of what we have built and the clarity of our vision for the future. This milestone allows UST to focus on the transformative technologies we lead in. It also ensures that UST HealthProof, with the backing of Bain Capital, can unlock new opportunities for growth and innovation. It is a win for our clients, our people, and the industry at large,” said Krishna Sudheendra, Chief Executive Officer, UST.

UST, which has been a key player in healthcare technology for over two decades, counts all five top US healthcare payers and over 50 healthcare systems among its clients. Its healthcare vertical alone employs more than 5,000 professionals, with a customer retention rate of 98% in the last five years.

With Bain Capital’s backing and support from healthtech firm HealthEdge, UST HealthProof will now operate as an independent entity, positioned to scale more rapidly and deepen partnerships. UST said it will continue to maintain a strong relationship with the spun-off business, ensuring continuity for shared customers.

Goldman Sachs and J.P. Morgan Securities acted as financial advisors to UST, while Davis Polk & Wardwell LLP served as legal counsel.

Founded in 1999, UST employs more than 20,000 professionals in India across Bengaluru, Thiruvananthapuram, Hyderabad, Kochi, Pune, Mumbai, Chennai, Coimbatore, Delhi NCR, Ahmedabad and Hosur, reinforcing its role as a leading digital transformation partner for global enterprises.