Technology-enabled clinical documentation and healthcare revenue cycle solutions provider CBay Holdings said it has acquired US-based Spheris Inc for about $116 million. The firm said its subsidiary MedQuist, would acquire Spheris’ North American assets which include contracts, clients and employees, while CBay Inc will acquire 100% in Spheris India Pvt Ltd.
Raman Kumar, vice-chairman & CEO of CBay Holdings said: ?The combined revenues by the end of financial year 2011 would be in excess $500 million. The acquisition brings additional capability to deliver out of India.? Currently, Spheris delivers about 34% of its revenues from India. ?We would continue to bring additional work to India and we are looking at about 50% of revenue delivery from India. We would also be expanding global work force to support it,? Kumar added.
Spheris, which filed for Chapter 11 bankruptcy protection on February 3, 2010, is a provider of clinical documentation technology and services, with operations in North America and India. Spheris would add about 2,000 people to CBay in India and bring upfront revenues of $ 150 million. CBay will have 8,000 employees in India and about 5,000 in the US. Spheris had consolidated revenues of $182.8 million and a net loss of $19.2 million for the year ended December 31, 2008. Gross assets were $275 million, of which $219 million is goodwill. CBay is eyeing the additional opportunities expected from the US healthcare bill, which brings 30 million more under healthcare.