Tech Mahindra to purchase CJS Solutions Group

Q.  Tech Mahindra will buy which US based healthcare IT consulting firm?
- Published on 07 Mar 17

a. CJS Solutions Group
b. Practo
c. Health Advances LLC
d. Navigant

ANSWER: CJS Solutions Group
 
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

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