Tech Mahindra to buy CJS Solutions Group

Software services firm Tech Mahindra Ltd has signed a definitive agreement to acquire CJS Solutions Group LLC; a US based healthcare information technology consulting company that does business as the HCI Group. The deal values CJS Solutions at an enterprise value of $110 Million.

The HCI Group works with global Tier-I healthcare service providers, primarily in the US and UK. It focuses on providing end-to-end implementation of electronic health record (EHR) and electronic medical record (EMR) software, training and support services. The company also has a presence in Europe, West Asia and Asia-Pacific and employs more than 500 professionals globally.

Healthcare and Life Sciences has been one of the focus areas for Tech Mahindra globally and the acquisition will help in consolidating its position. Healthcare is one of the few sectors globally that is driving adoption of digital technologies. 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 the space via EMR implementation and surrounding services.

In May 2016, Tech Mahindra announced it will acquire UK based Target Group in a deal worth around £120 Million to strengthen its presence in the banking and financial services space. In June, it said it had acquired UK based digital transformation firm BIO Agency Ltd.

Tech Mahindra to acquire Target Group

IT services and solutions firm Tech Mahindra has agreed to enter into an agreement to acquire Target Group, one of the leading processing platform companies in the UK. The value of acquisition is $164 Million and an adjustment for surplus cash up to GBP 8 Million.

The acquisition catapults Tech Mahindra to one of the top three processors in UK financial services for certain complex lending and investment product categories. It also strengthens Tech Mahindra European presence and adds several new clients. The acquisition will make Tech Mahindra a formidable player in the UK BFSI market with over 50 major financial institutions as clients.

The acquisition is in line with Tech Mahindra strategy of expanding its Fintech capabilities and adding IP and platforms to drive non linearity and play aggressively in the BFSI sector. Headquartered in the UK, Target Group has 740 employees and a client franchise, including leading financial institutions such as Goldman Sachs, Morgan Stanley. Target Group also has a strong pipeline which provides for high earnings visibility and cash flow generation.

Target Group provides BPaaS offerings in the areas of lending and investment products servicing to its clients, on variable pricing models. The combination of proprietary software, strong regulatory compliance practice and domain knowledge is a key differentiator for Target Group. The acquisition will help Tech Mahindra to expand its offerings in the lending, savings and investment and insurance sectors.