Tech Mahindra to acquire US-based CJS Solutions
06 March 2017
Software services firm Tech Mahindra has signed a definitive agreement to acquire CJS Solutions Group LLC, a US-based healthcare Information Technology consulting company for an enterprise value is $110 million.
The Mahindra & Mahindra group company will make an upfront payment of $89.5 million to buy 84.7% stake in the company which operates as The HCI Group, while the remaining 15.3-per cent stake will be acquired over a period of three years.
For the 12-month period ended 30 September 2016, the company 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.
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, optimisation, 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 CEO, Tech Mahindra.
The HCI Group has been recognized as one of the fastest-growing private companies in the US, has been consistently ranked by INC magazine 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 Consulting Magazine.
''The acquisition aligns very well with our DAVID strategy where 'Digitalisation' 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.
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.
''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.
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.