(courtesy of Jacksonville Business Journal)
A Mumbai-based technology company signed an agreement to purchase Jacksonville-based CJS Solutions Group LLC, which does business as The HCI Group, early Monday morning.
Tech Mahindra LTD will purchase an 85.7 percent stake in the company for an upfront price of $89.5 million and plans to buy the remaining stake over a three-year period, according to a statement from Tech Mahindra.
If the The HCI Group achieves all of its milestones during that three-year period, the Indian information technology giant will purchase the remaining stake for $130.5 million, bringing the total transaction to $220 million.
HCI Group Inc. is headquartered in Jacksonville, and has an international headquarters in the United Kingdom. The company provides “healthcare IT solutions in more than 10 countries in North America, Europe, Middle East and Asia Pacific, helping healthcare organizations plan, implement and sustain enterprise information technology systems.”
The company was founded by Jacksonville-native Ricky Caplin.
Caplin told the Jacksonville Business Journal that he views the merger of his company with $4.5 billion Tech Mahindra, as a tremendous opportunity.
“I plan to work with city leadership to position Jacksonville as the primary growth spot for Tech Mahindra, which if we capitalize on this opportunity, it will allow us to attract other international companies and technology firms,” he said.
Tech Mahindra currently operates a U.S. headquarters in Dallas, Texas.
The HCI Group will operate as an independent business unit of Tech Mahindra. A statement from HCI Group says the companies will be positioned “to offer new innovative and end-to-end integrated solutions to customers.”
The HCI Group’s financial advisor for the transaction is Allen & Company LLC, with Nelson Mullins Riley & Scarborough LLP serving as its legal counsel.
Derek Gilliam is a reporter for the Jacksonville Business Journal. He covers commercial and residential real estate and related industries as well as economic development and health care.