Tech Mahindra announces acquisition of 6.03 per cent equity shares in VitalTech Holdings
Tech Mahindra announced on Thursday after the market hours that its wholly-owned subsidiary Tech Mahindra (Americas), Inc. has agreed to acquire 6.03 per cent equity shares in VitalTech Holdings, Inc. It also has an additional option to acquire additional equity of up to 8 per cent until January 2021.
VitalTech Holdings, headquartered in Plano (Texas), is engaged in the business of cloud-based Telehealth and remote patient monitoring platform development and services. The company believes that this acquisition will strengthen its existing healthcare IT services business and help the company’s healthcare customers in their digital transformation journey. The tentative date for the completion of the acquisition is October 26, 2020. The cost of acquisition is USD 3 million. The company also has an option to invest an additional amount of up to USD 5 million until January 2021.
VitalTech Holdings, Inc. has 35 full-time employees and 10 on a contract basis. For the first year of its commercial launch in 2019, the target company’s turnover was USD 0.396 million. However, the year-to-date turnover as of September 30, 2020, is USD 2.2 million.
The stock of Tech Mahindra opened today at Rs.839, almost equal to its previous day’s close of Rs.838.1.