Tech Mahindra Ltd has signed a definitive agreement to acquire CJS Solutions Group LLC, a US-based healthcare information technology consulting company which does business as (DBA) the HCI Group.
Tech Mahindra will make an upfront payment of $ 89.5 million for purchase of 84.7 percent stake in the HCI Group, with the balance 15.3 percent stake to be acquired over a period of three years. As per the deal, the enterprise value of the HCI Group is $ 110 million. For 12-month period ended September 30, 2016, the HCI Group had revenues of $ 114 million.
Headquartered in Jacksonville (Florida), the HCI Group works with some of the world’s most prestigious tier-I healthcare service providers, primarily in the US and UK, focusing on providing end-to-end implementation of electronic health record (EHR) and electronic medical record (EMR) software, training and support services. The HCI Group has a large pool of Epic and Cerner (healthcare software) certified professionals, and it is a leading implementation firm for these leading companies globally. The company also has a presence in Europe, Middle East and Asia Pacific, and employs more than 500 professionals globally.
“Healthcare is one of the few sectors globally that is driving adoption of digital technologies. 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 route,” said C P Gurnani, managing director & chief executive officer of Tech Mahindra.
“The acquisition aligns very well with our DAVID strategy where ‘Digitalization’ is one of the five main pillars of our future growth strategy. It also aligns perfectly with our new brand philosophy – Connected World. Connected Experiences.” said Atul Kunwar, president & CTO of Tech Mahindra. In December last year, Tech Mahindra had announced DAVID (digital, automation, verticalization, innovation and disruption) strategy to achieve its goal of more than doubling its revenue to $10 billion by March 2020.
Healthcare and life sciences has been one of the focus areas for Tech Mahindra globally and the acquisition will help in consolidating the company’s position in this space. The HCI Group offers innovative and end-to-end integrated solutions for healthcare providers. Its solutions enhances the efficiency of physicians, hospitals, ancillary facilities, clinics, governmental health bodies and public health organisations.
