BPO firm Firtsource Solutions, spun off by the ICICI Group, has made the biggest acquisition by an Indian pure-play BPO company. It announced on Wednesday that it would buy US-based MedAssist Holdings for Rs 1,353 crore ($330 million) as part of a strategy to break into the healthcare sector, joining the likes of Wipro, which recently acquired a key foothold by buying Nasdaq-listed Infocrossing.
Mumbai-based Firstsource, formerly known as ICICI Onesource, will take on 1,400 employees of MedAssist, whose management will not be changed.
The size of the US health care market is around $700 billion and administrative costs are estimated to be around 14 per cent or $100 billion, thereby presenting a good opportunity, Firstsource said in a statement.
Analysts say that the deal will make Firstsource an end-to-end service provider.