US-based operations management and analytics company ExlService Holdings said it has signed a definitive agreement to acquire West Hartford Connecticut-based healthcare analytics solution and services firm SCIOInspire Holdings Inc. for $240 million (Rs 1,597 crore). Both companies have operations in India.
The transaction, which is expected to be complete in the next three months, will give full exits to SCIOInspire’s earliest investors, Sequoia Capital India and Saama Capital, a person close to the transaction told VCCircle, without disclosing the financial details.
Saama's spokesperson confirmed that the firm will be fully exiting without disclosing the financial details.
"We are happy with the returns. The company performed well and it is a good exit for all," he added.
Sequoia and Saama (formerly SVB India Capital Partners) had initially invested in SCIOInspire in Series A round in 2008. In the same round, US-based private equity firm Health Enterprise Partners had also invested in the company.
Because of healthy financials, SCIOInspire did not go for any major fundraising after its Series A round, Shailendra J Singh, a managing partner at Sequoia India, indicated in a tweet.
He tweeted, "Founders built the business frugally and profitably, with immense commitment and focus, and with little capital ever raised. Funded by revenues and profits in the last few years... A key lesson: Not every company has to raise a lot to build a good business."
Email to Sequoia Capital did not get any response.
Sequoia has also made significant investments in India-focused healthcare and health-tech companies such as Practo and 1mg through its five funds. It is targeting raising funds worth $650-700 million for its sixth India fund, down up to 30% from the $920 million it secured for its previous fund, The Times of India reported. Saama, on the other hand, raised $100 million (Rs 650 crore) for its fourth fund last month. The venture capital firm is largely sector-agnostic but its investments have mainly focussed on financial services, fin-tech, software-as-a-service (SaaS) and consumer products.
The acquisition of SCIOInspire will strengthen EXL's capability in high-growth cost and care optimisation markets, said Rohit Kapoor, vice-chairman and chief executive, EXL.
SCIOInspire, which was founded in 2007, caters to healthcare organisations across businesses including providers, health plans, employers, health services and global life sciences companies. It has more than 1,000 professionals in locations throughout the US, UK, and India.
TripleTree was strategic and financial advisor to SCIOInspire for the transaction.
EXL helps companies improve global operations, enhance data-driven insights, increase customer satisfaction, and manage risk and compliance across sectors. The Nasdaq-listed firm has more than 27,000 professionals in locations throughout the US, Europe, Asia, India, the Philippines, Colombia, Australia and South Africa.
The company has made acquisitions in the past. In 2015, it acquired RPM Direct, which is focused on the insurance industry, including property and casualty as well as life and health, for $74 million.
In 2014, it acquired New York-based Blue Slate Solutions for an undisclosed amount, to expand its business process management capabilities.