Tech Mahindra to acquire US-based healthcare IT services & consulting firm
Move to strengthen position in healthcare provider space and give access to marquee customers and healthcare consultants
by Suman Gupta
Mumbai, March , 2017: Tech Mahindra Ltd., a specialist in digital transformation, consulting and business reengineering today announced that it 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.”
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.
The HCI Group’s services include enterprise-wide advisory services, with a focus on IT system implementation and training, as well as specialty service lines in integration, testing, go-live, clinical adoption, optimization, HIMSS EMRAM and cyber security.
“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 HCI Group has been recognized as one of the fastest growing private companies in the USA, by various journals. INC magazine has consistently ranked The HCI Group as one of the fastest growing private companies across all sectors (#3 in 2013; #13 in 2014). Earlier this month, the company was recognized as the #11 fastest growing consulting company by the Consulting Magazine.
For 12-month period ended 30th September 2016, the company had revenues of US$ 114 million. The Enterprise Value is US$ 110 million; Tech Mahindra will make an upfront payment of US$ 89.5 million for purchase of 84.7% stake in the Company. The balance stake of 15.3% will be acquired over a period of three years.
“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.
“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,” said Ricky Caplin, CEO, The HCI Group.
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 Company 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 organizations.
Tech Mahindra was supported on this deal by due diligence advisor Ernst & Young and legal advisor Greenberg Traurig, LLP. Lodestone Corporate Advisors was the exclusive advisor to Tech Mahindra on the overall transaction.
The HCI Group’s financial advisor for the transaction is Allen & Company LLC, with Nelson Mullins Riley & Scarborough LLP serving as its legal counsel.
The transaction is expected to close by April 2017, subject to the regulatory approvals.
About Tech Mahindra : Tech Mahindra represents the connected world, offering innovative and customer-centric information technology experiences, enabling Enterprises, Associates and the Society to Rise™. We are a USD 4.2 billion company with 117,000+ professionals across 90 countries, helping over 837 global customers including Fortune 500 companies. Our convergent, digital, design experiences, innovation platforms and reusable assets connect across a number of technologies to deliver tangible business value and experiences to our stakeholders. Tech Mahindra is amongst the Fab 50 companies in Asia (Forbes 2016 list).
We are part of the USD 17.8 billion Mahindra Group that employs more than 200,000 people in over 100 countries. The Group operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, after-market, information technology and vacation ownership.
Connect with us on www.techmahindra.com | Our Social Media Channels
About The HCI Group : The HCI Group is a global leader in healthcare IT consulting with headquarters in Jacksonville, Florida and international headquarters in the United Kingdom. It offers a broad scope of healthcare IT solutions in more than 10 countries in North America, Europe, Middle East and Asia Pacific, helping healthcare organizations plan, implement and sustain enterprise information technology systems.
The HCI Group’s services include enterprise-wide advisory services, with a focus on IT system implementation and training, as well as specialty service lines in integration, testing, go-live, clinical adoption, optimization, HIMSS EMRAM and cyber security. Learn more about the HCI Group by visiting www.thehcigroup.com.