FirstSource Emerges Frontrunner For Buying MedAssist

Mumbai: FirstSource Solutions is the frontrunner for buying the US-based healthcare player MedAssist. The deal size is almost $300 million (around Rs 1,200 crore). If it materialised, it would be one of the largest overseas acquisitions after Wipro''s buyout of Infocrossing for around $600 million and the largest in the BPO space. A FirstSource executive, however, said: As a policy, we do not comment on market speculation.

Sources close to the deal say there is one more serious contender in the race for MedAssist, which has revenues of $90-100 million and provides patient services, eligibility services, patient financing and healthcare collections. It has around 1,400 employees and 950 healthcare providers as clients. FirstSource is also rumoured to be in the race to acquire Citi''s BPO unit after the first round of bidding. The sale of the BPO business, being run by Citigroup Global Services (formerly eServe), is expected to fetch Citi around Rs 3,200 crore. Other bidders include WNS and Genpact. Around 13 per cent of FirstSource''s revenue comes from the healthcare segment. In January this year, it acquired BPM - a Delaware-based healthcare claims outsourcing company - for around $30 million.