Tech Mahindra gains 2% as US-based arm to acquire 6.03% stake of VitalTech Holdings

The transaction is considered in cash to the tune of $3M. Also, the company plans to make an additional investment of $5M until January 2021.

Oct 23, 2020 03:10 IST India Infoline News Service

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IT-company, Tech Mahindra on Friday witnessed buying sentiment after the company announced that it's wholly-owned subsidiary Tech Mahindra (Americas) has agreed to acquire 6.03% equity shares in VitalTech Holdings, Inc.

At around 3.22 PM, Tech Mahindra stock was trading at Rs850.40 per piece higher by 1.47% on Sensex. The stock has gained to the day's high of Rs857 per piece.

Tech Mahindra in its regulatory filing on the acquisition said it will strengthen the company’s existing Healthcare IT services business and help the company’s healthcare customers in their digital transformation journey.

The transaction is considered in cash to the tune of $3M. Also, the company plans to make an additional investment of $5M until January 2021. This translates into 6.03% of equity shares with an option to acquire additional equity of up to 8% till January 2021 in VitalTech.

Headquartered in Plano, Texas, VitalTech is engaged in the business of cloud-based Telehealth and remote patient monitoring platform development and services.  

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