Sutherland to buy Apollo’s BPO arm for Rs 1K cr

Sutherland Global Services of the US will acquire the healthcare outsourcing arm of Apollo Hospitals — Apollo Health Street (AHS) — for about Rs 1,000 crore.

The US BPO firm has signed a definitive agreement to acquire 100 per cent stake in AHS, which will strengthen its presence in the $38 billion US healthcare BPO market.

"We have been extremely impressed by Apollo Health Street's deep domain understanding and world-class platform based delivery capabilities," said Dilip R Vellodi, founder chairman & CEO of Sutherland Global Services.

Apollo Hospitals Enterprise, which holds 38 per cent stake in AHS, will get around Rs 225 crore for its stake as part of the deal. The all-cash transaction is expected to close by February 2013, subject to customary regulatory and other conditions.

Prathap C Reddy, founder chairman of Apollo Hospitals, said, "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."

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