Apollo Health Street, healthcare outsourcing arm of the Apollo group of hospitals, on Thursday announced acquisition of BPO company Zavata.
CHENNAI: Apollo Health Street, a global healthcare outsourcing arm of the Apollo group, on Thursday announced the acquisition of Atlanta-based BPO and enterprise support solutions company, Zavata Inc, for Rs 697 crore.
"The fourth acquisition for Apollo Health Street and the second in the US provider space, it strengthens AHS's position as a leading provider of outsourcing solutions to the healthcare industry," Apollo Chairman Prathap C Reddy said.
While the Bank of India and Barclays Capital had structured a debt to the tune of Rs.550 crore, the rest would be from internal generation for the acquisition, he said.
It also makes the combined organisation the largest focused healthcare BPO organisation in the country with a significant IT business, he said.
The combined oganisation will have more than 100 customers and over 2,500 employees spread across multiple locations in the US and in India.
The company was coming up with a back office at Chennai, which would employ 400 persons initially, which would go upto 2,000, he said.
Both AHS and Zavata have trained professionals in their service centres in the US and India, allowing them to leverage technology, time zone differences and human expertise to deliver the right solutions to their clients, he said.
"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," AHS Managing Director Sangita Reddy said.
"In addition to the set of services we already offer, Zavata adds a complimentary set of services, including expertise in areas such as full business office and emergency medical transport billing," she added.
AHS' acquisition of Zavata comes at a time when the US healthcare sector is looking at ways to reduce costs while improving service quality to the end consumer, Andrew Devoe, CEO, AHS, said.
"AHS has always differentiated itself through its deep domain knowledge and healthcare background. The acquisition of Zavata will enable it to further improve the financial strength and liquidity for the healhcare industry, enabling healthcare organisations to focus on their core objective of providing high-quality patient care," Prathap C Reddy, said.
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