Date:05/03/2005 URL: http://www.thehindubusinessline.com/2005/03/05/stories/2005030501910500.htm

Back Philippines co buys KG group's medical transcription biz

Vishwanath Kulkarni

Bangalore , March 4

SPI Technologies Inc, a Philippines-based content outsourcing services provider, is acquiring the medical transcription business of the Coimbatore-based KG Group in an all cash deal.

Mr Ernest L. Cu, President and Chief Executive Officer, SPI Technologies Inc, said acquisition of KG Information Services and Technologies Pvt Ltd's medical transcription business, would help it to scale up delivery capabilities in India to meet the growing demand for MT services by US firms.

However, Mr Ernest Cu declind to disclose the financial details of the transaction, but said the deal would be closed in a couple of weeks. KG operates a 270-seat medical transcription facility in Coimbatore and currently has about 350 employees operating in different shifts, he said.

"We are buying KG's medical transcription unit purely for the reason of adding capacity and not for its revenues or clients. If utilised fully in three shifts, we could employ close to 800 people in the Coimbatore facility," he added.

KG MT unit is the second acquisition of SPI in India, which earlier acquired the Pondicherry-based Kolam Information Services in 2003. The latest acquisition increases SPI's headcount in medical transcription to over 800 globally. SPI has two facilities in the Philippines delivering medical transcription services.

Medical transcription accounts for close to 15 per cent of SPI's revenues.