by CIO Staff

Firstsource of India Acquires U.S. Outsourcer BPM

News
Jan 04, 20072 mins
Mergers and Acquisitions

Indian outsourcer Firstsource Solutions has acquired BPM, a health-care claims outsourcing company in Delaware, and its two wholly owned operating subsidiaries, MedPlans 2000 and MedPlans Partners.

Firstsource paid about US$40 million for BPM and its subsidiaries, according to informed sources. The company has not disclosed the acquisition price.

The acquisition of BPM is in line with Firstsource’s strategy to expand in the health-care market. The company already offers database management, policy administration and claims processing, and will now be able to extend its services to include complex claims adjudication as well, a spokeswoman for Firstsource said Thursday.

BPM currently has more than 300 employees across three centers in Rockford, Ill.; Fort Scott, Kan.; and Louisville, Ky. Firstsource will not move any of the jobs to India, Firstsource said. The company’s strategy is to offer its clients in the United States a choice of having their work done onshore or offshore from India.

Firstsource of Mumbai employs more than 9,000 employees across 17 delivery centers in India, the United Kingdom, the United States, Argentina and a center under development in Philippines. With the acquisition of BPM, the company will have three more centers in the United States. Its health-care practice already employs about 250 employees in India.

A number of Indian business process outsourcing companies and software services companies are acquiring companies in the United States and Europe, to get market access and to offer near-shore services to its customers.

-John Ribeiro, IDG News Service (Bangalore Bureau)

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