August 30, 2007
In one of the biggest acquisitions in healthcare BPO sector, Chennai-based Apollo Health Street (AHS) has acquired US-based Zavata for Rs 700 crore. This is the fourth acquisition by AHS and second in the US provider space. The acquisition will strengthen AHS's position as a leading provider of outsourcing solutions to the healthcare industry, and also provide its clients a more comprehensive set of service offerings.
The combined organisation will be the largest healthcare BPO firm in India, with a significant presence in IT business. It will have more than 100 customers and over 2,500 employees spread across multiple locations in US and India.
"There are significant synergies to be achieved from this transaction, and the acquisition of Zavata has helped us position AHS as one of the largest, fully integrated healthcare BPO companies in the world with further capabilities in providing enterprise support services. In addition to the set of services we already offer, Zavata adds a complementary set of services including expertise in areas such as full business office and emergency medical transport billing," said Sangita Reddy, managing director, Apollo Health Street.
Apollo Health Street has been looking at acquisitions, especially in the US as an inorganic growth route while continuing to grow organically at a rate of 70 per cent per annum.
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