BPO firm Hinduja Global Solutions Ltd’s US subsidiary Hinduja Global Solutions Inc. has signed an asset purchase agreement with Deloitte Consulting LLP and Deloitte Consulting Extended Business Services LLC to purchase their healthcare revenue cycle outsourcing business EBOS (Extended Business Office Solutions) in an all-cash transaction, according to a BSE filing. HGS Inc. plans to close the transaction in early October but the deal value has not been disclosed.
The EBOS business comprises accounts receivable processing services and insurance eligibility verification services. It caters to several US hospitals and post this transaction, HGS Inc. will have access to its customer base. The transaction is expected to result into incremental revenue of $11 million, according to the filing.
HGS has significant presence in healthcare sector and the transaction will further strengthen its ability to deliver outsourcing services to hospitals/providers.
HGS Ltd’s scrip was trading at Rs 299 a unit at 2.42 pm on the BSE, up 0.65 per cent in a strong Mumbai market.
Mumbai-based Hinduja Global Solutions, a part of the multi-billion-dollar conglomerate Hinduja Group, provides outsourcing solutions including back office processing, contact centre services and customised ITeS solutions to its global clientele comprising several Fortune 500 companies.
If the deal materialises, it will be the fourth such acquisition by HGS in the last two years. In June 2010, it had acquired UK-based customer relationship management company Careline Services through its European subsidiary. Last August, HGS acquired two more companies including Mumbai-based HCCA Business Services Pvt Ltd and Canada’s customer relationship management company On-Line Support Inc.
(Edited by Sanghamitra Mandal)