The information technology arm of the Mahindra Group, a multibillion-dollar Mumbai-based conglomerate, is acquiring CJS Solutions Group, doing business as HCI Group, a Jacksonville, Fla.-based health information technology consultancy.
Tech Mahindra will pay $89.5 million upfront to buy an 84.7% stake in the company with the remaining 15.3% to be acquired over a period of three years for what it described as an “enterprise value” of $110 million.
HCI will continue to operate under its own name as a subsidiary of Tech Mahindra, a global information technology company.
The merged company will focus on health IT infrastructure management, business process outsourcing and automation, technical innovation to support clinical transformation, and business intelligence and performance management, according to a news release. HCI Group CEO Ricky Caplin said Tech Mahindra would help HCI reduce costs and use "disruptive innovation" to improve the health IT industry.
The HCI Group is “vendor agnostic,” but has performed most of its implementation support work with electronic health record systems developers Cerner Corp., Kansas City, Mo., and Epic Systems Corp., Verona, Wis., two major vendors to larger hospitals and health systems, HCI spokesman Chris Parry said.
HCI Group also claims expertise in implementing Meditech, McKesson, NextGen and Allscripts Health Solutions IT systems.
Last year, HCI Group acquired Houston-based Expert Technical Advisors, Houston, a health IT and systems-implementation company.
HCI was part of a failed bid led by IBM and Epic Systems for a multibillion-dollar contract to install a new EHR for the Military Health System, the healthcare arm of the Defense Department. Cerner, Leidos and Accenture Federal Services were the winners of a $4.3 billion deal for the first years of the installation that is expected to cost $9 billion or more.
All of HCI Group's 500 employees in the U.S., U.K., Europe and the Middle East and the company's leadership will remain in place following the transition, which remains subject to regulatory approvals, Parry said.