Acquisitions help companies obtain a better share of the market. Companies generating larger revenues try to acquire smaller players within the industry. They may even be found trying their hand in other industries through definite mergers or acquisitions.
As reported by VCCircle, Sutherland Global Services (the company), a US based company involved in the provision of business process and technology management services across the globe is acquiring Apollo Health Street (AHS), the healthcare outsourcing half of Apollo Hospitals.
The company has signed an agreement of acquisition with the Apollo group, and through the contract has decided to buy the entire stake in AHS. This as a result would strengthen Sutherlands’ presence in the healthcare industry and eventually the US market.
Dilip Vellodi, the founder Chairman and CEO of Sutherland Global Services said the company would now look upon consolidating its service portfolio. s They shall assist consumers and care providers in the health industry to deliver more cost-efficient patient-centric services..
On other hand, BPO giant Genpact was one of the other contenders attempting to acquire Apollo Health Street.
As part of the deal, Sutherland would pay Rs 225 crore for the 38 percent stake held by Apollo Hospitals Enterprise. However, subject to customary regulatory and other conditions, both the companies have reported to be closing the deal by February 2013.
Prathap C Reddy, the Chairman of Apollo Hospitals said that this step was taken in the process of finding a right partner who could help them evolve as market leaders in the healthcare industry. He further mentioned Sutherland as the best chosen strategic partner with a proven track record with respect to the services they provide and leadership qualities they attain.
This acquisition will serve the healthcare organizations with quality solutions that offer the individuals more economic solutions. However, with the acquisition the company is expecting to generate 15 percent of its revenue from the healthcare industry alone. If this happens, then Sutherlands’ revenues by the fiscal year end would be USD 900 million.
Sutherland operates through 35 centers across the global with the overall employee count being 30,000. The company has operations in countries including the US, India, UAE, UK, Canada, Jamaica, Egypt, Mexico, Colombia, and Bulgaria.
As a result of the acquisition, the company would have an additional 3,200 qualified employees on board and would be catering to 200 clients in the areas of finance, healthcare, telecom, banking as well the retail sector.