CBay buys Spheris for $116 mn

COIMBATORE: CBay Holdings, a global medical transcription (MT) company, completed the acquisition of another MT company Spheris for $116.3 million last Friday. The deal would boost CBay’s revenue by $500 million this year.

In the two-phased acquisition, CBay’s subsidiary MedQuist acquired the North American assets of Spheris while CBay bought out the entire stock of Spheris India. Spheris had earlier filed for bankruptcy protection in the US court.

The deal size was originally pegged to be around $75 million when they entered into a stalking horse agreement in February 2010. But, CBay Holdings had to raise the bid amount to $116.3 million.

“With the acquisition of Spheris, our revenues are expected to touch $500 million this year,” CBay Holdings’ VC & CEO Raman Kumar said.