Strategic Ventures Fund (SVF), managed by Indian private equity firm Frontline Strategy, has exited medical transcription software and services provider MedQuist Holdings (formerly CBaySystems) for an undisclosed sum, SVF has disclosed.
The entire divestment was through sale of shares on NASDAQ. SVF had generated total returns of over 4x from investment in the world’s largest clinical documentation technology and service provider, the firm said.
SVF had originally invested in CBaySystems in multiple tranches, between 2002 and 2005, to provide growth capital to the company and thus ensure its rapid expansion. CBaySystems was listed on the AIM Stock Exchange, London, in 2007. But from early this year, the company has shifted to NASDAQ, following a corporate restructuring.
“We attribute the success of this investment to Raman Kumar, the founder of CBay, and the management team which has worked hard over the years to successfully scale up the company. We are glad that our association with Kumar will continue with his presence on the investment committee of our new funds,” Atim Kabra, managing partner of Frontline Strategy Ltd, said.
SVF had made a total of 15 investments in Indian companies and this is SVF’s 11th complete divestment. SVF has also made two significant partial divestments out of the balance four investments it currently holds.
Some of other investments of SVP in India include Astra Microwave (a defence electronics company), Shilpa Medicare (a pharma API company specialising in oncology), Titagarh Wagons (a large railway wagons manufacturing company) and Alfa Transformers (a power transformer manufacturing company).
MedQuist (formerly CBaySystems) serves more than 2,400 health systems, hospitals and physician groups in the USA. It is also associated with 40 Indian healthcare services providers with 39 centres based in India and one in Bhutan. It has over 6,200 employees in its owned and franchise centres in India.
