As reported earlier, the deal has gone through.
In the second-largest takeover of an overseas business process outsourcing (BPO) firm by an Indian company, Firstsource Solutions has announced the acquisition of US-based MedAssist for $330 million. This is the third acquisition for Firstsource in the US, and its seventh in all.
The news drove up Firstsource shares nearly 10% to Rs 79.40 on BSE on Wednesday.
With revenues of $99 million in 2006, Louisville, Kentucky-based MedAssist is among the largest firms providing revenue cycle management services to the healthcare sector in the US. The buyout will give Firstsource a footprint in the hospital side of the healthcare business.
The deal values MedAssist at 12.5 times its 2007 operating profit, Firstsource CFO Rajesh Subramaniam said. MedAssist’s revenues have been growing at 7-10% annually, and its core earning margins are higher than most US firms at 22-24%. “We see significant opportunity to grow our business in the segment by cross-selling our services to MedAssist’s customers,” Firstsource managing director and CEO Ananda Mukerji said.
(Source: Economic Times)
Showing posts with label MedAssist. Show all posts
Showing posts with label MedAssist. Show all posts
Thursday, August 30, 2007
Thursday, August 23, 2007
FirstSource in advanced talks on $300 mn US buy
A leading Indian pure-play business process outsourcing (BPO) firm, FirstSource Solutions, has emerged as the frontrunner in the quest to buy the US-based healthcare player MedAssist.
The deal size, sources say, is close to $300 million (around Rs 1,200 crore). If it materialised, it would be one of the largest overseas acquisitions after Wipro’s buyout of Infocrossing for around $600 million and the largest in the BPO space, they added.
Sources close to the deal say there is one more serious contender in the race for MedAssist, which has revenues of $90-100 million and provides patient services, eligibility services, patient financing and healthcare collections. It has around 1,400 employees and 950 healthcare providers as clients.
FirstSource is also rumoured to be in the race to acquire Citi’s BPO unit after the first round of bidding. The sale of the BPO business, being run by Citigroup Global Services (formerly eServe), is expected to fetch Citi around Rs 3,200 crore.
During its initial public offering (IPO) in January, the FirstSource management had indicated that the company intended to use the net proceeds of the issue for acquisitions, setting up facilities, repaying loan and general corporate purposes. Out of the proceeds of the IPO, the company plans to spend approximately Rs 180 crore on acquisitions.
(Source: Business Standard)
The deal size, sources say, is close to $300 million (around Rs 1,200 crore). If it materialised, it would be one of the largest overseas acquisitions after Wipro’s buyout of Infocrossing for around $600 million and the largest in the BPO space, they added.
Sources close to the deal say there is one more serious contender in the race for MedAssist, which has revenues of $90-100 million and provides patient services, eligibility services, patient financing and healthcare collections. It has around 1,400 employees and 950 healthcare providers as clients.
FirstSource is also rumoured to be in the race to acquire Citi’s BPO unit after the first round of bidding. The sale of the BPO business, being run by Citigroup Global Services (formerly eServe), is expected to fetch Citi around Rs 3,200 crore.
During its initial public offering (IPO) in January, the FirstSource management had indicated that the company intended to use the net proceeds of the issue for acquisitions, setting up facilities, repaying loan and general corporate purposes. Out of the proceeds of the IPO, the company plans to spend approximately Rs 180 crore on acquisitions.
(Source: Business Standard)
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