Tech Mahindra to acquire 6.03% stake in Texas based VitalTech

Tech Mahindra to acquire 6.03% stake in Texas based VitalTech
Photo Credit: Reuters
23 Oct, 2020

Pune based information technology services major Tech Mahindra on Thursday announced that its wholly owned subsidiary Tech Mahindra (Americas), will acquire 6.03% equity shares worth $3 million in VitalTech Holdings, virtual healthcare and remote patient monitoring platform.

Tech Mahindra has also been given the option to acquire an additional 8% equity worth up-to $5 million till January 2021.

Founded in 2018, Plano, Texas based VitalTech began as a biosensor technology company. It now provides VitalCare, an integrated digital health platform that simplifies workflows and supports connected care through remote patient monitoring.

Critical patient data is collected on the devices after which it is moved to the cloud to user’s applications, family connected applications and care teams applications.

The data can also be programmed to be used in administrative web portals and third-party integrations.

Tech Mahidra said that the acquisition would strengthen the company’s existing healthcare IT services wing and also help the company’s healthcare clients in their digital transformation initiatives.

The tentative date for the completion of the deal is 26 October 2020. The revenue for VitalTech for the year ended 31 December, 2019 was $0.396 million. The company currently employs 35 full time workers.

In its latest earnings report, Tech Mahindra reported a 5.27% year-on-year YoY decline in net profit for the quarter ended September 30. Its quarter on quarter profit was at 9.5% at Rs 1,063 crore. The company also announced a special dividend of Rs.15 per share.

In late September, Tech Mahindra had announced that it had sold about 18.5 million shares of its investment in telecom software services provider Altiostar Networks for $45 million to Japanese firm Rakuten.

In early September the company also launched cloud operations and subscription management platform for enterprises called iCOPS, which it said would improve efficiency by leveraging artificial intelligence for IT operations and analytics, with data security and cost optimisation.