The Hindu Business Line : Apollo Health Street acquires US co for $31 m

Apollo Health Street (AHS) Pvt Ltd, the healthcare services company of Apollo group, has acquired a company in the US working in hospital billing and receivables management areas.

AHS acquired Armanti Financial Services (AFS), LLC, for a consideration of $31 million. While the US company's annual sales for the year was put at $26 million, AHS expected to generate $16 million for the year.

Post acquisition, the company expected to achieve $45 million in 12 months and $100 million in the next 18 months. The staff strength was expected to go up to 3,750 in the same period.

Announcing the acquisition here on Monday, Ms Sangita Reddy, Managing Director of AHS, said the deal would be completed in three years. Apollo group had a 48 per cent share in AHS. The acquisition would promise outstanding growth and redefine the market space.

More acquisitions

AHS said it was looking at two more acquisitions in the US soon. "At least two are under active consideration. Discussions are on for one," Mr Arnab Sen, Head (Mergers and Acquisition) of AHS, said.

This, he said, was part of company's target to get 50-60 per cent of revenues through acquisitions. The combined entity would have a strength of 1,500, with nearly a quarter of them working in the US.

Listing option

She said that though Nasdaq listing is one option, it might not happen soon. "No decision has been taken yet on this," she said.

Meanwhile, the company could come out with a domestic public issue. It might take less than a year.