Tech Mahindra To Merge Subsidiaries Healthnxt And Tech Mahindra Americas
Consolidation will result in synergy of business operations, optimise operational costs and reduce compliance risk, Tech Mahindra said.
Tech Mahindra Ltd. will merge its subsidiary Healthnxt Inc. with Tech Mahindra (Americas), also a subsidiary, as it aims to consolidate businesses.
The businesses of Healthnxt and Tech Mahindra (Americas) are complementary; hence, consolidation of the entities will result in synergy of business operations, optimise operational cost and reduce compliance risk, Tech Mahindra said in an exchange filing on Tuesday.
While Tech Mahindra (Americas) is a wholly owned material subsidiary of Tech Mahindra, Healthnxt is a wholly owned subsidiary of TMA and a step-down wholly owned subsidiary of the Pune-headquartered software services firm.
“Both the transferor and transferee companies are wholly owned subsidiaries and hence, there will be no cash consideration or issue of new shares involved under the Plan of Merger," the filing said. "The investment of TMA in Healthnxt will get cancelled on the merger becoming effective."
Healthnxt is a virtual healthcare company that offers a fully integrated in-patient experience at home and outsourced services. TMA provides computer consulting, programming support services and IT management and consulting services in industries, including healthcare.
The turnover of Healthnxt and TMA for the year-ended March 2024 is $1.07 million and $1,153.28 million, respectively. “The company is not party to the plan of merger and the shareholding pattern of the company remains unchanged,” the filing said.
