CBaySys to buy bankrupt Spheris

CBaySystems Holding, which specialises in medical transcription and related services, will acquire Spheris, a global provider of clinical documentation technology and services. Spheris recently filed for Chapter 11 bankruptcy protection. The deal will be worth $75 million (around Rs 345 crore).

CBay’s subsidiaries MedQuist Inc and CBay Inc have entered into a “stalking horse” purchase agreement with Spheris Inc, whereby – subject to court approval – MedQuist Inc will acquire the company’s North American business and CBay Inc will acquire the stock of Spheris India Pvt Ltd, a subsidiary of Spheris.

Spheris’ total headcount is 5,000, of which about 2,000 are in India. If the acquisition in successful, CBay Systems India will have a headcount of 8,300. CBay Systems has 6,300 employees in India, of which 3,800 work at their captive centres, while 2,500 are in franchisees.

 

Spheris’ 2008 revenue was around $180 million (nearly Rs 840 crore). “Spheris India will be a great addition to our India operations and will enhance our delivery capability in providing additional processing capacity, superior coverage and quality documentation to our customers,” CBay’s Vice-Chairman and CEO Raman Kumar said.