Written by : Nikita Saha
June 26, 2024
Reportedly, the merger is set to take effect on July 1st, this year, marking a significant consolidation within the company's operational structure.
IT giant Tech Mahindra has approved the merger of its subsidiary, Healthnxt, with its parent company, Tech Mahindra Americas (TMA) in an exchange filing.
On Tuesday, the Board of Directors of the Indian IT services and consulting behemoth approved the amalgamation of Healthnxt Inc with TMA.
Reportedly, the merger is set to take effect from July 1st, this year, marking a significant consolidation within the company's operational structure.
"We wish to inform that a plan of merger of Healthnxt Inc., a wholly-owned step-down subsidiary of the company with its parent company viz Tech Mahindra (Americas) Inc., a wholly-owned material subsidiary of the company, has been approved by the respective companies on Tuesday, June 25, 2024," the company stated.
The businesses of both Healthnxt and Tech Mahindra Americas (TMA) are complementary, thus the consolidation of these entities is expected to generate synergies in business operations, optimize operational costs, and mitigate compliance risks.
“There will be no cash consideration or issue of new shares involved under the plan of merger. The investment of TMA in Healthnxt will be canceled on the merger becoming effective,” the company said in its disclosure.
For the financial year that ended on March 31, 2024, Healthnxt reported a turnover of $1.07 million, while TMA recorded a turnover of $1,153.28 million.
Founded in 2009 by Dixon Thayer and Dr Raymond Fabius, Healthnxt is a virtual healthcare company that offers fully integrated inpatient experiences at home and outsourced services. It was acquired by Tech Mahindra in August 2022. However, the financial details have not been disclosed.
Tech Mahindra Americas (TMA), on the other hand, is a subsidiary of Tech Mahindra Limited, a Mahindra Group Company.
It provides information technology services, including telecommunication software, software engineering, e-business, network design, engineering, testing, security, embedded solutions, mobility, and business intelligence services in the United States.
Tech Mahindra leverages next-generation technologies such as 5G, Blockchain, Cybersecurity, and AI to enable end-to-end digital transformation for global customers.
In the fourth quarter of FY24, Tech Mahindra’s consolidated net profit surged by 29.51% to INR 661 Cr, notwithstanding a 1.76% decline in revenue from operations to INR 12,871.3 Cr compared to the third quarter of FY24.
On Tuesday, shares of Tech Mahindra rose by nearly 2%, closing at INR 1,428.25 apiece on the Bombay Stock Exchange (BSE).
In a similar development, recently, Indian drugmaker Sun Pharma completed the merger of Taro Pharmaceutical with its subsidiary.
Per the merger deal, Sun Pharma acquired all outstanding ordinary shares of Taro Pharmaceutical which were not earlier owned by the company or its affiliates for $347.73 million, which is approximately INR 2,891.76 Cr, in cash.