The deal is valued at Rs. 697 crore; the two companies will work together
SBI, Barclays structure debt
Back office planned in Chennai
CHENNAI: Apollo Health Street (AHS), a healthcare outsourcing arm of the Apollo Group, has acquired the Atlanta-based BPO and enterprise support solutions company, Zavata for Rs. 697 crore.
This was the fourth acquisition for Apollo Health Street and the second in the U.S. provider space. The takeover would strengthen AHS’s position as a leading provider of outsourcing solutions in the healthcare industry, according to the Chairman of Apollo Health Street, Prathap C Reddy. Addressing a press conference here on Thursday, Dr. Reddy said Bank of India and Barclays Capital had structured a debt for Rs. 550 crore. The balance would be from internal accrual, of which 50 per cent would be from Apollo Group of Hospitals and the balance from other promoters.
Dr. Reddy said the combined organisation would have more than 100 customers and over 2,500 employees in the U.S. and in India. It would be the largest focussed healthcare BPO in the country with a significant IT business, he added.
The Managing Director of the company, Sangita Reddy, said that in addition to the set of services that was being offered by AHS, Zavata would complement such services by offering full business office and emergency medical transport billing. The company was coming up with a back office in Chennai, which would employ 400 persons initially and would go up to 2,000, she said.
The Chief Executive Officer and President, Andrew DeVoe, said the acquisition came at a time when the U.S. healthcare sector was looking at ways to reduce costs.