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Exela Technologies Stock Soars After Winning $90m Contract

Sam Boughedda trader
Updated 9 Mar 2021

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XELA

Shares of business process automation firm Exela Technologies (NASDAQ: XELA) are rallying premarket on Tuesday after the company announced a 10 year, $90 million venture blending automation technologies, SaaS, and services through its PCH Global platform.

The PCH Global platform officially launched in September last year. Exela’s strategy is to migrate existing and future healthcare customers to PCH Global’s cloud network to offer greater scalability and business continuity protections.

The company’s share price is up 37.5% premarket at $2.27 after closing Monday’s session down 4.6%.

Exela said the venture is the first of its kind for the company in the healthcare industry, as it involves the large-scale deployment of its digital exchange platform in the cloud and onsite to deliver healthcare solutions.

“The venture involves the end-to-end processing of complex health insurance claims and multi-channel correspondence between the insurance company and their provider and member networks,” the Texas-based company said.

Exela’s President, Suresh Yannamani, commented: “The combination of proprietary technology, global service delivery and industry expertise, positions Exela as a leader in enrollments, complex claims processing, appeals and grievance management and payment solutions.

“Our goal has been to set ourselves apart by developing PCH Global as a complete payment integrity solution for the insurance industry, handling everything from claims ingestion and validation, to correspondence, adjudication and payments.”

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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.