Apollo Health Street buys Atlanta-based BPO co for Rs. 697 cr.
Chennai, Aug. 30 (PTI): Apollo Health Street (AHS), a global healthcare outsourcing arm of the Apollo group, today announced the acquisition of Atlanta-based BPO and enterprise support solutions company, Zavata Inc, for Rs 697 crores.
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 told reporters here.
While the Bank of India and Barclays Capital had agreed to lend Rs 550 crores for the acquisition, the rest would come from internal generation, he said.
The acquisition would also make the combined organisation the largest healthcare BPO organisation in the country with a significant IT business, Reddy said.
The combined organisation would have over 100 customers and more than 2,500 employees spread across various locations across the US and India.
The company, which is setting up a back office at Chennai, would employ 400 persons initially, which would go up to 2,000, the Apollo chief added.
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, Reddy said.
"There are significant synergies to be achieved from this transaction," AHS Managing Director Sangita Reddy said.
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, AHS CEO Andrew Devoe said.
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