Software services firm Tech Mahindra has agreed to acquire US-based healthcare IT consulting company CJS Solutions Group for an enterprise value of $110 million (about ₹734 crore) to expand its presence in the healthcare space.
Tech Mahindra will immediately buy an 84.7 per cent stake making an upfront payment of $89.5 million, while the balance 15.3 per cent will be acquired over three years. The transaction is expected to close by April 2017.
“Healthcare is one of the few sectors globally that is driving adoption of digital technologies,” said Tech Mahindra Managing Director and CEO CP Gurnani. “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 Electronic Medical Records (EMR) implementation and surrounding services route.”
Tech Mahindra has been on an acquisition spree, with the company buying as many as 10 companies since 2012. The acquisition of Target Group for $164 million and Bio Agency for $66 million, both in 2016, were among its biggest buys.
CJS Solutions, which does business as the HCI Group, had posted revenues of $114 million for the 12-month period ended September 30, 2016. The company also has a presence in Europe, Middle East and Asia Pacific, and employs more than 500 professionals globally.
Headquartered in Jacksonville, Florida, the HCI Group works with tier-I healthcare service providers, primarily in the US and the UK, focussing on implementation of electronic health record and electronic medical record software, training and support services.
Tech Mahindra shares closed 0.94 per cent down to ₹499.25 on a steady BSE, which ended up 0.75 per cent on Monday.