Sutherland Global Services buys Apollo Health Street for Rs 1k cr
The transaction is expected to close by February 2013. It may be recalled that Apollo Hospitals is in the look out for buyers for over two years.
Apollo Health Street, which has an annual run rate of around $110 million, posted a revenue of R270 crore for the half-year ended September with an Ebitda margin of 18%, said A Krishnan, chief financial officer of Apollo Hospitals Group. It has an employee strength of around 3,200 people with 10 centres, including six in the US with 700 employees, said Sangita Reddy, managing director, Apollo Health Street. The company has 150 clients, mostly in the US, she added.
Apollo Hospitals, with its shareholding of close to 40% in AHS, will rake in around R225 crore out of this sale. The promoters, including Reddys and entities, hold another 13% in the company on individual basis. Major PEs such as One Equity Partners of JP Morgan, Schroder group of Europe and Temasek Holdings of Singapore hold around 20%, 7% and 10%, respectively, with the remaining being held by individual investors and employees, Sangita Reddy maintained.
“It is believed that nearly half-a-dozen companies were in race to acquire AHS, however, Sutherland was the natural
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