Tech Mahindra's wholly owned subsidiary, Tech Mahindra (Americas), Inc. has agreed to acquire 6.03% equity shares in VitalTech Holdings, Inc. for a total cash consideration of $3 million.
The company also has an option of investing an additional amount of upto $5 million (or an additional 8% stake) till January 2021. The acquisition is expected to be completed by 26 October 2020. The announcement was made after market hours yesterday, 22 October 2020.
This deal is expected to strengthen Tech Mahindra's existing healthcare IT services business and also enable its healthcare customers in digital transformation.
VitalTech Holdings is an IT services firm in the healthcare sector, headquartered in Plano, Texas (USA). It is engaged in the business of cloud-based Telehealth and remote patient monitoring platform development and services.
Shares of Tech Mahindra rose 0.64% to Rs 843.50 on BSE. The scrip has gained 79.37% from its 52-week low of Rs 470.25 hit on 23 March 2020.
Tech Mahindra is engaged in the business of computer programming, consultancy and related services. The firm's segments include information technology (IT) services and business processing outsourcing (BPO).
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