Apollo acquires Atlanta-based BPO Zavata for Rs 700 crore

According to Apollo Health Street chairman Prathap C Reddy, every other sector including financial services or manufacturing has benefited from the global delivery model and the US Healthcare market is also beginning to take advantage of that. “AHS has always differentiated itself through its deep domain knowledge and healthcare background and the acquisition of Zavata will enable it to further improve the financial strength and liquidity for the healthcare industry, enabling healthcare organisations to focus on their core objective of providing high quality patient care,” Reddy said.

“There are significant synergies to be achieved from this transaction, and the acquisition of Zavata has helped us position AHS as one of the largest, fully integrated healthcare BPO companies in the world with further capabilities in providing enterprise support services,” said Apollo Health Street managing director Sangita Reddy. “In addition to the set of services we already offer, Zavata adds a complementary set of services, including expertise in areas such as full business office and emergency medical transport billing,” Reddy said.

Bank of India and Barclays Capital jointly structured and provided the debt financing for this transaction. The acquisition comes at a time when the US healthcare sector is looking at ways to reduce costs while improving service quality to the end consumer. “Our business strategies and appetite for growth are very much aligned, and I am confident that this transaction will yield great rewards to our customers and employees,” said Zavata Inc executive chairman and CEO Satish Sanan.

Sanan will stay on as a consultant in the merged entity, to ensure a smooth integration of Zavata into Apollo Health Street. Zavata’s existing customers include hospitals, payors and TPAs in the healthcare business.