Latest News | Tech Mahindra Unit to Pick Up Stake in Texas-based VitalTech Holdings

New Delhi, Oct 22 (PTI) IT major Tech Mahindra on Thursday said its US subsidiary will acquire 6.03 per cent stake in US-based VitalTech Holdings, Inc for USD 3 million.

Tech Mahindra (Americas), Inc will acquire 6.03 per cent of equity shares with an option to acquire additional equity of up to 8 per cent till January 2021, it said in a regulatory filing.

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The cost of acquisition is USD 3 million, and Tech Mahindra has the option to invest an additional amount of up to USD 5 million till January 2021, it added.

The tentative date of closure of the transaction is October 26, 2020.

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The transaction will strengthen Tech Mahindra's existing healthcare IT services business and help its healthcare customers in their digital transformation journey, the filing said.

Texas-based VitalTech Holdings, Inc is engaged in the business of cloud-based telehealth and remote patient monitoring platform development and services.

It has 35 full-time employees and 10 on contract basis. Its turnover for the fiscal ended December 31, 2019 was USD 0.39 million.

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