Philippines' SPI Tech Buys India's KG Unit

Filed in archive Outsourcing News on March 5, 2005

Philippine-based SPI Technologies Inc. will acquire the medical transcription unit of KG Information Services and Technologies in a soon to be finalized all-cash deal.

The acquisition will increase SPI's outsourcing capability in India, allowing the company to meet high demand for medical transcription services. The KG Group "operates a 270-seat medical transcription facility in Coimbatore and currently [employs] 350 employees."

Ernest Cu, president and CEO of SPI, said, "We are buying KG's medical transcription unit purely for the reason of adding capacity and not for its revenues or clients. If utilized fully in three shifts, we could employ close to 800 people in the Coimbatore facility"

Along with, SPI's two medical transcription units in the Philippines, the KG unit will push SPI's medical transcription force to over 800 globally. Medical transcription accounts for 15 percent of the company's revenues.

KG is the second Indian company acquired by SPI. The company acquired Kolam Information Services in 2003.