Thursday, October 30, 2008

ELICO ACQUIRES US-BASED CODING & BILLING CO

Phalguna Jandhyala, Hyderabad, October 30, 2008
The Hindu Business Line

Elico Ltd has acquired a US-based coding and billing company.

“The company we have acquired is the first acquisition in the BPO business and depending on the success of this acquisition we will look for more in the future,” Ramesh Datla, Managing Director, Elico Ltd said.

He, however, did not want to give the size of acquisition as both the companies are privately owned.

The Hyderabad-based Elico is a manufacturer of electronic analytical instruments, professional grade switches and software development & services. It also does back office work for US-based hospitals and physician practices and is into medical transcription.

Datla said currently there are 400 people working for its BPO business and it plans to increase the headcount to 500 by June-July next year. It also manages a 100-seat operation in Bangalore for a US client.

“Though the recent acquisition is a small one, we are now looking at companies in the ticket size of $5 million to $10 million, which are based in the US,” he said.

Datla said that the company is looking at setting up a facility in the proposed Hardware Special Economic Zone coming up on the outskirts of Hyderabad.

Datla said that it is too early to comment on the investments proposed and will be finalised only after the allotment of land.

Elico has entered into partnerships with seven multinational companies. It does new product design and development, manufacturing and also is involved in developing software for existing products for instruments for chemical analysis. It also does R & D activities for defence and PSU units.

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