Tech Mahindra, India's fourth biggest software services exporter, will buy US based healthcare IT consulting firm CJS Solutions Group for an enterprise value of US $110 million.
Tech Mahindra, which will acquire CJS through a unit, will make an upfront cash payment of US $89.5 million for the acquisition of 84.7% stake in CJS.
The remaining 15.3% to be acquired over three years, the company said in a statement.
CJS, which operates as the HCI Group, specialises in the implementation of electronic medical records (EMR) software.
Healthcare and life sciences business, which accounts for around 7 pct of Tech Mahindra's revenues, has been a key focus area for the Indian company and the acquisition of CJS will help it consolidate its position, the company said.
Ernst & Young acted as the due diligence advisor to Tech Mahindra while Allen & Company LLC were the financial advisors to HCI Group.
The transaction is expected to close before the end of April.
Tech Mahindra: Know More- CEO: C. P. Gurnani (24, May 2012)
- Revenue: 4.1 billion USD (March 2016)
- Headquarters: Mumbai
- Founder: Anand Mahindra
