IT service provider Mindtree to acquire 6.64% stake in COPE Health Solutions

Mindtree Ltd informed the stock exchanges that it is acquiring a 6.64 percent stake in COPE Health Solutions in lieu of a strategic investment it has made in the US-based healthcare company.

"Mindtree has made a strategic investment and agreed to acquire a 6.64% stake in COPE Healthcare Consulting Inc, USA pursuant to a Stock Purchase Agreement entered on April 4, 2022," the regulatory filing noted.

Based in Los Angeles and New York, COPE Health Solutions works with health systems, medical groups, and other healthcare organisations across the US "to enable the transition to value-based care and payments", Mindtree said in a press release.

With this investment, Mindtree said, it will be able to leverage the consulting, data analytics, and management capabilities of COPE Health Solutions to "expand its provider and payer footprint".

The partnership will also help in driving growth in areas such as value-based care, population health management, and connected health, Mindtree added.

The market reacted positively to the development, with Mindtree stock gaining 1.68 percent on the BSE. The shares closed at Rs 4,385.5 apiece, which was Rs 72.40 higher as compared to the previous day's close.

"Our investment in COPE Health Solutions unlocks the complementary value propositions of the two companies for the rapidly evolving healthcare sector in the US to reduce the cost of care and improve outcomes," said Venu Lambu, Executive Director and President, Global Markets, Mindtree.

Cope Health Solutions CEO Allen Miller said Mindtree's strategic investment and digital transformation capabilities will help them in delivering compelling healthcare solutions.

"The two companies share a deep commitment to innovation powered by technology. This is vital to the success of value-based care in the emerging healthcare landscape in the US," Miller added.