Tech Mahindra Ltd said Thursday it has agreed to acquire a minority stake in Texas, US-based health-tech startup VitalTech Holdings Inc. as part of efforts to strengthen its healthcare software services business.
The investment will help the company’s healthcare customers in their digital transformation journey, Tech Mahindra said in a stock-exchange filing.
The IT company, part of the diversified Mahindra Group, will first invest $3 million (Rs crore) in VitalTech for a 6.03% stake. It also has an option till January 2021 to buy another 8% stake in the company for $5 million.
VitalTech offers cloud-based tele-health and remote patient monitoring platform development and services.
The startup was incorporated in May last year. Its revenue for the financial year ended December 31, 2019, was $396,000. It has 35 full-time employees and 10 on contract.
Tech Mahindra, like bigger rivals Infosys Ltd and Wipro Ltd, has been investing in startups or making acquisitions to beef up its skills in areas such as digital transformation, cloud computing and artificial intelligence.
Earlier this year, the Pune-based company agreed to acquire Bengaluru-based Cerium Systems Pvt. Ltd and US-based Zen3 Infosolutions (America) Inc.
In November last year, Tech Mahindra had agreed to acquire Born Group Pte. Ltd and its Indian unit as part of efforts to enhance its consulting capabilities.
In July 2019, Tech Mahindra had agreed to acquire a majority stake in US design consultancy Mad*Pow Media Solutions LLC. The month before, it decided to acquire Canadian IT consultancy Objectwise Consulting Group Inc.
In April last year, the IT firm sealed a deal to acquire 18.1% stake each in Infotek Software & Systems Pvt. Ltd and Vitaran Electronics Pvt. Ltd for a total of up to Rs 13 crore.