SPI Tech buys out Coimbatore medical transcription firm

The Phillipine-based $100 million SPI Technologies has acquired the Coimbatore-based KG Information Services and Technologies's medical transcription business for an undisclosed sum.

Peter Maquera, vice president-corporate development said, "This acquisition would help the company accelerate its delivery capacity to the increasing demand for medical transcription services by US healthcare providers."

This is the second company to be acquired after the company's takeover of the Pondicherry-based Kolam Information Services in 2003.

According to Maquera, the Coimbatore-based company, which has 270 seats, would be increased to 800. For this venture, along with its major stake holder""T H Lee Putnam Ventures, SPI Technologies will invest over $50 million to strengthen the company's systems and processes.

Maquera expects a turnover of over $10 million over the next three years from this centre. IDC has pegged the global medical transcription business to be around $2.3 billion which is primarily fuelled by rising US spending on medical transcription services. This business is expected to grow to $4 billion by 2008.

To service such a big market, SPI is eyeing further acquisitions in India and elsewhere, said Maquera.

SPI Technologies currently operates from Delhi, Kolkata, Chennai, and Pondicherry. While the south centres are looking at the medical transcription business, the Delhi centre caters to the content and publishing division of the company. Kolkata is the only company that is a sub-contract firm but Maquera declined to comment whether it would be eventually acquired by SPI.

The company services 150 clients globally in legal, healthcare, financial and content publishing. While legal and publishing contribute 40 per cent each to the global turnover of the company, medical transcription is around 20 per cent according to Maquera.