ChrysCapital Buys Healthcare Solutions Company for Rs 1000 Crore

Largest Indian private equity investor ChrysCapital has acquired 80 percent ownership in GeBBS Healthcare Solutions, a provider of Revenue Cycle Management (RCM) for the North American healthcare industry, in a deal estimated at about Rs 1000 crore or USD 140 million. The acquisition of the Los Angeles headquartered GeBBS signals a nascent trend of Indian private equity managers acquiring US companies, with ChrysCapital alone striking third such deal in recent years. ChrysCapital, which manages assets worth more than USD 3.3 billion, had earlier bought big stakes in LiquidHub and Infogain, both operating in the Indo-US corridor. The 12-year-old GeBBS — leveraging technology for cost containment solutions — works with the top five healthcare providers and insurance companies to help them in increasing profitability, scalability, patient satisfaction and compliance. Founders Nitin Thakor and Milind Godbole along with the management will retain 20 percent stake and continue to run the company with revenue nearing USD 100 million annually.

ChrysCapital acquired controlling interest buying shares from a few exiting financial investors. “The deal involved secondary share purchases. We are committed to infusing further capital to help GeBBS grow inorganically,” Sanjay Kukreja, partner, ChrysCapital, told TOI. The US healthcare revenue cycle management technology and solutions market is estimated at USD 9 billion and growing at 15 percent annually. Kukreja and ChrysCapital expects outsourcing to pick up significantly in the healthcare RCM, most of which is managed internally at present. Business complexities driven by regulations and increasing industry consolidation were bound to boost outsourcing, said Nitin Thakor, President and CEO, GeBBS. “We decided to partner with ChrysCapital for our next phase of growth because of their deep IT & BPO expertise and strong network of relationships, which will complement our capabilities and deliver value to our customers,” Thakor added. ChrysCapital and GeBBS declined to comment on financial details if the deal.

Founded in 1999, ChrysCapital is arguably one of the most successful private equity managers with more than 80 investments and over 65 profitable exits. The firm’s current and past investments include names like HCL Technologies, L&T Infotech, LiquidHub, Intas Pharma, Mankind Pharma, Hero FinCorp, and National Stock Exchange of India. – TOI