The HCI Group to be acquired by Indian IT firm Tech Mahindra
The HCI Group, which works with major providers on end-to-end implementation of electronic health record systems, offering support for Epic, Cerner and others, will be acquired by Tech Mahindra in a $110 million deal.
The HCI Group, which is based in Jacksonville, Florida and employs 500 IT professionals worldwide, offers enterprise-wide advisory services focused on EHR implementation and training, in addition to service lines in integration, testing, go-live, clinical adoption, optimization, cybersecurity and HIMSS EMRAM. Its revenues were $114 million for the 12 months that ended September 30, 2016.
Tech Mahindra will make an initial payment of $89.5 million for an 84.7 percent stake in HCI, aquiring the 15.3 percent balance over the next three years. The initial transaction is expected to close by April 2017, subject to regulatory approvals.
"Healthcare is one of the few sectors globally that is driving adoption of digital technologies," said CP Gurnani, CEO of Tech Mahindra, in a statement. "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."
"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," added Ricky Caplin, CEO, The HCI Group. "What better way to support our customers than by joining with the global leader in digitalization and connected technologies."