Firstsource Solutions Ltd, a firm owned by RP Sanjiv Goenka Group, has entered into an agreement to acquire a 100% stake in Quintessence Business Solutions & Services (QBSS), a medical billing and coding services company.
In an exchange filing on Friday, Firstsource Solutions said the company will acquire 100% stake in QBSS for Rs 327.8 crore ($39.2 million) from Anitha Balasubramanian, N S Ragunathan, T S Giridharan and R Nirmal Kumar.
Mid-market investment bank Veda Corporate Advisors advised QBSS on the transaction and the share transfers are expected to close by 15 May.
According to its website, QBSS has over 100 physician groups registered with it. It has managed up to $270 million in charges in a month, collecting $100 million in insurance payments.
As part of the transaction, the company will acquire 500,000 equity shares representing 100% of the paid-up share capital of QBSS.
The Chennai-headquartered firm, founded in 2011, QBSS provides revenue cycle management services for healthcare service providers and their intermediaries in the US.
The company recorded an operating turnover of $14.8 million in FY24, up from $11.6 million in FY23 and $9.7 million in FY22.
QBSS has a wholly-owned subsidiary in the US, called Quintessence Health LLC, based in Delaware. Upon completion of the transaction, QBSS will become a wholly owned subsidiary of Firstsource Solutions and QBSS LLC will become a step-down subsidiary of Firstsource Solutions.
RP Sanjiv Goenka group has 23 companies and over 44,500 employees.
