 "Tech Mahindra unit to pick up stake in Texas-based VitalTech Holdings")
IT major Tech Mahindra on Thursday said its US subsidiary will acquire 6.03 per cent stake in US-based VitalTech Holdings, Inc for USD 3 million.
Tech Mahindra (Americas), Inc will acquire 6.03 per cent of equity shares with an option to acquire additional equity of up to 8 per cent till January 2021, it said in a regulatory filing.
The cost of acquisition is USD 3 million, and Tech Mahindra has the option to invest an additional amount of up to USD 5 million till January 2021, it added.
The tentative date of closure of the transaction is October 26, 2020.
The transaction will strengthen Tech Mahindra's existing healthcare IT services business and help its healthcare customers in their digital transformation journey, the filing said.
Texas-based VitalTech Holdings, Inc is engaged in the business of cloud-based telehealth and remote patient monitoring platform development and services.
It has 35 full-time employees and 10 on contract basis. Its turnover for the fiscal ended December 31, 2019 was USD 0.39 million.