Tech Mahindra (India), specialist in digital transformation, has recently signed an agreement to acquire CJS Solutions Group LLC (The HCI Group), a US-based healthcare information technology consulting company.
This acquisition is in line with the objectives of the Indian firm, which places « digitalization » among the five main pillars of its growth strategy.
HCI: one of the fastest growing private companies in the United States
The HCI Group works with leading Tier-I healthcare service providers throughout the world. The company is present in Europe, Middle East and Asia-Pacific.
The firm focuses on providing end-to-end implementation of EMR and EHR software, training and support services. It offers enterprise-wide advisory services, focused on on IT system implementation and training but also on specialty service lines in integration, testing, optimization and cybersecurity.
The HCI Group has been recognized as one of the fastest growing private companies in the United States by various specialized journals, such as INC magazine and the Consulting Magazine.
Tech Mahindra: an upfront payment of $ 89.5 million for the purchase of 84.7% stake in The HCI Group
« 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 CP Gurnani, managing director and chief executive officer of Tech Mahindra.
The company had revenues of US$114 M (€106 M), for 12-month period ended 30th September 2016. The group value is currently estimated at about US$110 M (€102 M).
The transaction is expected to close by April 2017, subject to obtaining all necessary regulatory approvals. Under the terms of the acquisition, Tech Mahindra will make an upfront payment of US$89.5 M (€83 M) for purchase of 84.7% stake in the company.
Through this acquisition, Tech Mahindra would like to modernize the health sector in India and around the world
« The acquisition (…) aligns perfectly with our new brand philosophy – Connected World. Connected Experiences, » said Atul Kunwar, president and chief technology officer of the Indian firm.
According to Ricky Caplin, CEO of The HCI Group, this partnership with Tech Mahindra « will improve the healthcare industry through a combination of disruption, innovation and cost reduction ».