Apollo Hospitals Acquires Zavata

Apollo Hospitals has acquired Atlanta based Medical BPO Zavata for $180 million. Zavata has strong operating margins of about 20 per cent and has over a thousand process certified staff. Its clients include the New York University''s Health Department. Apollo Hospitals says that it is looking for more such acquisitions in the US. The acquisition buzz had already been factored into the Apollo Hospitals stock, which is why it fell after the news came out. However, analysts say that the buyout gives a lot of upside to the stock as it gives Apollo Hospitals access to the $700 billion US hospital industry.

Apollo Hospitals stock price however didn''t capture much excitement about this deal and has been trading range bound since a month now. Perhaps, with the passage of time after seeing the impact of this deal on its financials, it helps to bring some cheer to its shareholders.

Source : www.indian-commodity.com