Tech Mahindra Ltd. will acquire an 84.7 percent stake in U.S.-based CJS Solutions Group LLC for $89.5 million in an all-cash deal as it looks to boost its revenue from healthcare information technology (IT) services.
Tech Mahindra plans to eventually buy out the remaining 15.3 percent over the next three years for up to $130 million, subject to certain performance milestones, the company informed the exchanges on Monday. CJS Solutions does business under the name HCI Group.
The HCI Group provides IT services to healthcare providers and also specialises in implementation of electronic medical records (EMR) software. It reported a revenue of $114 million for the 12 months ended September 30, 2016.
The acquisition will not only position Tech Mahindra as a significant player in the healthcare provider space, but will also provide an opportunity to go deeper in this space via EMR implementation and surrounding services routeCP Gurnani, MD and CEO, Tech Mahindra
The deal, expected to be completed by April-end, is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act in the U.S. and other regulatory clearances.
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