Sutherland Global Services, the US-based business process outsourcing and technology management services provider, will buy the Hyderabad-based healthcare business process outsourcing services firm Apollo Health Street Ltd.
According to sources, Sutherland will buy Apollo Health Street in an all-cash deal valued at Rs 1,000 crore.
The US firm said the transaction will be completed by February 2013, subject to customary regulatory and other conditions.
The acquisition will help it consolidate its position in the $38-billion global healthcare BPO market. It will help Sutherland to consolidate its services portfolio across payer, provider and health IT services.
The 26-year-old company employs 30,000 people in 35 centres in the US, India, the UK, Canada and some other countries.
An arm of the Apollo Group of Hospitals, Apollo Health Street has been looking for a strategic investor for some time.
“In order to drive Apollo Health Street's growth to the next stage of its evolution, it was essential to find the right strategic partner. In Sutherland, we found the ideal partner with a proven track-record of excellence in services, technology, and leadership. The combined capabilities of both companies will create a compelling value proposition for our clients,” Dr Prathap C. Reddy, founder Chairman of Apollo Hospitals, said here in a statement on Tuesday.
The US-based Sutherland has large presence in India. Apollo Health is an associate company of Chennai-based Apollo Hospitals Enterprises Ltd.