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Indian medical transcription provider acquired by CBay Systems

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UK-listed healthcare services BPO firm CBaySystems has announced the acquisition of Nagpur-based medical transcription services provider Suyash Software in a cash and stock deal. CBaySystems said in a regulatory filing with the London Stock Exchange that it would pay 775,000 dollars in cash and the company’s shares for a 75 per cent stake in Suyash. CBaySystems, which has a significant client base in the US, will acquire the remaining 25 per cent by May 2009. Suyash provides transcription services to physician practices in the US. It is already one of the largest centres in CBaySystems’ network of partnership-based production centres and the two have been working together since May 2002. The Indian firm has 156 employees at two locations in Nagpur. This is CBay Group’s second acquisition in India after the takeover of Mumbai-based Godrej Remote Services Ltd, which wad providing medical transcription services to large hospital networks in the US, in August 2005. As per the deal, CBaySystems will pay an initial payment of 274,955 dollars in cash followed by six monthly payments in cash commencing November 30. The total of the six monthly payments is 166,771 dollars in cash. In addition, following the statutory approvals, CBaySystems will issue new ordinary shares valued at 333,520 dollars to shareholders of Suyash. The price per share at which these new ordinary shares will be issued will be based on the average closing price per share during the 90-day period immediately preceding the signing of the Share Purchase Agreement. CBay Group’s back office operations are conducted through 34 owned and outsourced processing centres in India and Oman. These centres employ over 5,000 medical language specialists and customer service professionals.

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