NexJ Systems, a company that provides both enterprise customer management solutions for the financial services industry, as well as a cloud-
based population health management platform to the healthcare industry, announced a spinoff that it hopes will result in more innovation for the company.
NexJ’s healthcare business will now be owned by a completely new corporation, NexJ Health Holdings. The agreement is meant to benefit both the company’s innovation strategy and its shareholders, as shareholders will receive one share of NexJ Health Holdings for every share of NexJ Systems owned.
“The spin-off allows both NexJ Systems and NexJ Health to innovate further and address the needs of their respective vertical markets. NexJ has long been recognized by industry analysts for its innovation, achieving recognition as best-in-class and leaders several times over,” said Matthew Bogart, VP of corporate communications at NexJ Systems.
The arrangement will make it easier for investors to more accurately evaluate NexJ Systems, the software business, on a stand-alone basis, while offering them new growth opportunities presented by NexJ Health Holdings. NexJ’s board of directors unanimously approved the move, which will now allow NexJ Health Holdings to function as an independent company and take better steps to address its growth objectives.
“NexJ Systems was not being valued for the whole of its parts. The enterprise relationship management business has been growing profitably, with global customers using its product in more than 60 countries. It is a more mature and established business,” said Bogart. “NexJ Health is at an earlier stage of its development having spent the past few years demonstrating the efficacy of its solution in research and trial.”