Tech Mahindra Merges Healthnxt with Its US Subsidiary to Optimize Operations

Indian IT giant Tech Mahindra announced the merger of its subsidiary Healthnxt with Tech Mahindra (Americas), effective from July 1, 2024. The merger aims to optimize business operations, reduce compliance risks, and improve operational costs. No cash consideration or new shares will be issued in the process.

Indian IT giant Tech Mahindra on Tuesday revealed plans to merge its subsidiary, Healthnxt, with its wholly-owned entity, Tech Mahindra (Americas), a move scheduled to take effect on July 1, 2024, according to a regulatory filing.

The company clarified that the merger would not involve any cash consideration or issuance of new shares as both Healthnxt and Tech Mahindra (Americas) are wholly-owned subsidiaries of Tech Mahindra. 'The investment of TMA in Healthnxt will get cancelled on the merger becoming effective,' stated the filing.

Healthnxt, currently a virtual healthcare provider, is set to integrate fully into Tech Mahindra (Americas), bringing synergistic benefits to business operations, reducing compliance risks, and optimizing operational costs. The turnover for the fiscal year 2024 for Healthnxt and Tech Mahindra (Americas) stood at USD 1.07 million and USD 1,153.28 million, respectively.

This announcement saw Tech Mahindra shares rise by 1.96% on Tuesday, closing at Rs 1,428.25 apiece on the BSE.