Mahindra Group is pacing in every revenue-generating business from logistics to e-commerce markets. In lieu of the same, the Indian tech giant now eyes the healthcare industry and is looking to acquire U.S healthcare IT services provider, CJS Solutions in the coming months. The organisation, valued at $110 million, will be bought under Tech Mahindra, the IT and networking wing for the Mahindra Group. Headquartered in Pune, the division will expand company’s presence in the healthcare ecosystem.
Owned and operated by the HCI Group, CJS Solutions offers healthcare IT consulting services globally. The HCI Group is a New York Stock Exchange-listed company providing software solutions to leading healthcare systems. The firm employs over 500 staff members and has a proven record of excellence. It presented revenues worth $114 million for the 12-month period ended September’16, which seems to be a significant consideration for the deal.
Speaking on the proposed acquisition, C P Gurnani, Chief Executive Officer of Tech Mahindra said,
Healthcare is one of the few sectors globally that is driving adoption of digital technologies. The acquisition will position Tech Mahindra as a significant player in the healthcare provider space.
It is being said that Tech Mahindra will initially shell out $89.5 million to acquire 84.7 percent of CJS Solutions, while the rest of the stake (15.3%) will be bought over the period of next three years. The company seeks to go deeper into the healthcare segment via EMR implementation and surrounding services route.
Praising the progress and position of Tech Mahindra in India, Ricky Caplin, CEO of The HCI Group, said,
I truly believe that Tech Mahindra is the right partner for us to improve the healthcare industry through a combination of disruption, innovation and cost reduction. What better way to support our customers than by joining with the global leader in digitalization and connected technologies.
The deal is expected to conclude in April with Mahindra Group making an upfront payment. With the extension of services in medical field, Mahindra Group will pioneer health-tech space in the country.