Sutherland acquires Apollo Health Street

Apollo Hospitals Enterprises has decided to sell its associate company Apollo Health Street Ltd to US-based Sutherland Global Services for Rs1,000 crore – a deal Genpact too was keenly eyeing.
“A definitive agreement has been signed with Sutherland and the deal will be closed in about 60 days,” A Krishnan, CFO of the company, told DNA Money.
Apollo Hospital Enterprises has 38% equity in Apollo Health Care. The rest is held by private equity funds and the promoters in their individual capacity.
“In order to drive Apollo Health Street’s growth to the next stage of its evolution, it was essential to find the right partner. In Sutherland Global Services, we have found a strategic partner with a proven track record of excellence in services, technology and leadership,” Prathap C Reddy, founder chairman of Apollo Hospitals, said.
Apollo Health Street, which provides tailor-made IT-based solutions to handle the financial operations of healthcare organisations, services more than 150 organisations throughout the United States through 10 global operational centres of excellence.
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On the other hand, Sutherland, which offers an integrated portfolio of analytics-driven back-office and customer facing solutions, is one of the largest independent BPO companies in the world, with over 30,000 employees globally working out of 35 operations centres in various countries.
“With this acquisition, Sutherland addresses the central challenge facing major North American and European health care providers and payers to provide exceptional service to patients in a cost effective manner. Apollo’s expertise, combined with our proven capabilities, strengthens our portfolio of payers, providers and health IT solutions in driving significant value to our client base,” said Dilip R Vellodi, founder chairman and CEO of Sutherland Global Services.
The acquisition is expected to position Sutherland as a leading healthcare service provider with IT and business process integrated solutions and consolidate its presence as a dominant player in the $38 billion US healthcare business process outsourcing sector.
On its part, Apollo Hospitals can now focus on growing its core healthcare delivery services.