US-based business process outsourcing company Sutherland Global Services, with significant operations in India, has bought out Apollo Health Street, the IT solutions arm of the Apollo Hospital Group in a consolidation in the services sector, with an eye on emerging healthcare-related opportunities supported by US President Barack Obama's policies.
Sources familiar with the development said Sutherland, led by Indian-born Dilip R Vellodi paid about Rs. 1,000 crore to acquire 100% stake in AHS held by Apollo promoters Reddy family and a couple of private equity (PE) companies.
The acquisition makes the combined entity a dominant player in the $38-billion (Rs 206,340 crore) US healthcare BPO market, Sutherland said.
Kerala-born and Chennai-educated Vellodi founded Sutherland, a pioneer in the BPO industry, in 1986. Sutherland has offices in Mumbai, Chennai and Kochi, and 35% of its 30,000-strong global work force are based in India.
AHS provides customised strategic support services to more than 150 healthcare partners throughout the US from 10 global operational centres.
"With this acquisition, Sutherland addresses the central challenge facing major North American and European healthcare providers and players - to provide exceptional service to patients in a cost effective manner," Vellodi said in a statement.
Apollo Hospitals founder Pratap C Reddy said, "The combined capabilities of both companies will create a compelling value proposition for our clients."