Tech Mahindra to buy US health care service provider for Rs 732 cr

Florida-based company provides electronic health and medical record services

Information technology services entity Tech Mahindra will acquire CJS Solutions Group, a US-based health care provider, for Rs 732 crore ($110 million).

The Florida-based company, which does business as HCI Group, provides electronic health and medical record services, and allied software training and support.

Tech Mahindra will make an upfront payment of $89.5 million to take an 84.7 per cent stake in the company, which reported annual revenue of $114 million as on end-September 2016. The remaining stake will be acquired over three years.

This acquisition is in line with TechM's 'DAVID (digital, automation, verticalisation, innovation and disruption)' strategy. It will give the company access to prominent health care companies in America and Britain. The core leadership team of CJS will continue and the 500 fulltime employees will be absorbed by TechM.

"Health care 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 space but also provide an opportunity to go deeper in it via electronic medical record implementation and surrounding services," said C P Gurnani, managing director of TechM.