U.S.-based Sutherland Global Services, a business process outsourcing (BPO) firm, will acquire Apollo Health Street Ltd. in order to scale up its healthcare business services.
"The U.S. healthcare market is growing. Last few years we have been investing in healthcare market. Both Sutherland and Apollo Health are in the same business in healthcare. Hence we found it to be a good match," said Dilip Vellodi, founder chairman and chief executive officer of Sutherland.
However, it was neither confirmed or denied by Vellodi that Sutherland will be paying around Rs.1,000 crore for Apollo Health. He was quoted saying that it is an all cash deal and being a fair price, it will not pay more or less.
Having deep domain knowledge in their respective fields, Apollo Health has around 3,000 people on its rolls. Throughout the U.S., more than 150 healthcare partners from 10 global operational centers of excellence receive customized strategic support services provided by Apollo Health.
Vellodi added that operations of Apollo Health and Sutherland's healthcare services complement each other because both of the companies are in the same space. To provide exceptional services to patients in a cost-effective manner, Sutherland aims to address the central challenge facing major North American and European healthcare providers, with this acquisition.
Subject to regulatory clearances, the sale transaction is expected to be completed by February 2013. In the $38 billion U.S. healthcare BPO market, Sutherland feels that the acquisition will position the combined organization as a leading healthcare service provider.
Vellodi concluded that since there will be no need to have two organizations in the same vertical, soon Apollo Health will be integrated with Sutherland and eventually there will be no rationalization of headcount at the acquired outfit.
Edited by Brooke Neuman