HealthCast healthcare security company acquired by Houston firm

photo of healthcare worker
A healthcare worker. Security is increasingly important in the healthcare world due to regulatory requirements. File photo.

A Boise-based security company specializing in the healthcare industry has been acquired by a Houston security company.

Identity Automation, which provides access management, identity governance, and multifactor authentication software, purchased HealthCast Inc., which makes enterprise single sign-on and virtual desktop technology for the healthcare industry. Identity governance helps companies manage diverse and variable workforce constituencies, and to protect sensitive data and resources, which is particularly important for healthcare providers, according to the research and advisory firm Gartner.

“As I dug into the specifics of what they offered, I was intrigued by their technology,” said James Litton, CEO and cofounder of Identity Automation. “They bring a lot of expertise around thin client and virtual desktop capabilities,” particularly in the healthcare vertical market, he said. He plans to integrate the HealthCast products into Identity Automation’s RapidIdentity suite of products, and continue to invest in them, he said.

HealthCast will continue in Boise, Litton said. “The team at Healthcast is very attractive, with deep security knowledge and healthcare domain knowledge,” he said. “We want to retain that, invest in that, and take advantage of folks who are there.”

Litton may also hire new staff in Idaho. “Occasionally we’ll hire folks in remote locations,” he said. “Boise will now be one of those target locations.”

Of the 20 employees at HealthCast, one was terminated. “It was some accounting functions that we had pretty well covered,” Litton said. With the acquisition, Identity Automation now has 110 employees, and almost 800 customers, he said.

Identity Automation is likely to acquire other companies as well, Litton added. “There’s six or eight deals we’re looking at right now,” he said. “One of my stated goals is to continue to grow the company by leveraging a whole host of strategies. One of those is acquisition.” Any other acquisitions will also be in security, he said.

Both companies are private and no price was announced, but Litton said it was under $10 million.