BPO company EXL Service Holdings is on the look out for US-based companies that would help double revenues from its nascent healthcare business, a top company official said.

However, the company feels that the valuation of some of the assets that are up for grabs are unrealistic.

Speaking to Business Line , Mr Pavan Bagal, Chief Operating Officer of the Nasdaq-listed company, said, “Healthcare is an area of great interest to us. The problem is it is an area of great interest to everybody. The valuations would depend on the nature of the business, but the multiples are crazy.”

The company did look at some healthcare specific back office companies in the past, but pulled out over valuation differences with the target company, Mr Bagal told Business Line on the sidelines of the Nasscom India Leadership Forum.

“We want to acquire companies that have a sound client base, be it on the payer side or the receiver side,” said Mr Bagal, adding that the firm plans to double its healthcare revenues to six per cent.

US bill

Thanks to the US healthcare reforms Bill that was passed last year, Indian companies are keen to invest in healthcare-related services. Once the US healthcare reform bill gets implemented, the theory is that more jobs will be outsourced to India, despite political rhetoric and noise in the US.

The proposed healthcare reforms bill will bring an additional 30 million people under the health cover.

However, it is not necessary that EXL's next acquisition would be in the healthcare space only. Apart from healthcare, the company is also on the look out for buys in the finance and accounting space, Mr Bagal said.

Related Topics
comment COMMENT NOW