Mumbai: Apollo Hospital Enterprises is in advance talks with two Atlanta, US-based firms for a possible takeover as part of its plans to expand in medical business process outsourcing space, chairman Prathap C Reddy said.
"Hopefully, things would be finalised in the next 3-4 days," he said without naming the target companies. But he added talks were at an advance stage.
The deal size is expected to be close to $180 million with funding being done through debt and equity, reports quoting sources close to the developments said.
If the deal goes through, Apollo Hospitals will be providing medical facilities and medical solutions over the internet to hospitals overseas. The deal would also give Apollo access to more clients in the US.
The US healthcare industry is pegged at over $2 trillion and, much like financial outsourcing, this has become another avenue that countries like India can benefit from.
Apollo Hospitals has floated a subsidiary in the US called Apollo Health Street Inc, which already complies with US regulatory norms.
The actual financial impact of the deal on the company's financials will only be known after the acquisition cost and funding plans are detailed.
Reddy said the company has dumped plans to acquire hospital chain in the UK as the prices quoted were very high.
Apollo Hospitals, meanwhile, has entered the health insurance in India through a joint venture with Germany-based DKV AG, Apollo DKV Insurance Company, involving total investments of Rs108 crore.
DKV AG would have a 26 per cent stake in the JV while Apollo would own 74 per cent.