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ePLDT's BPO Subsidiary Acquires Springfield Service Corporation for US$ 44 Million
SPi Expands Healthcare Platform by Adding Physician Billing and Revenue Cycle Management Services to Its Portfolio
| Source: SPi
MANILA, PHILIPPINES -- (MARKET WIRE) -- April 16, 2007 -- SPi, a leading global business process
outsourcing (BPO) company, today announced that it has acquired, through a
wholly owned US subsidiary, 100% of Springfield Service Corporation for an
aggregate purchase price of US$ 44 million, with the potential for future
earn out payments.
Springfield Service Corporation (SSC), the 10th largest player in the
medical billing and revenue cycle management market, has 383 employees
operating in 5 locations in the US and provides billing and accounts
receivable management services for over $1.3 billion of physician charges
annually. SSC is estimated to generate in excess of US$30 million in
revenues over the next twelve months. The 21-year-old company also offers
practice management services including patient scheduling, coding and
compliance assistance, consulting and specialized reporting services. SSC
is known for its superior operational capability on the GE Centricity
Business System (formerly known as IDX Flowcast) and EPIC, two of the
leading platforms in the industry, strong client relationships, and
experienced management team.
Ernest L. Cu, President and CEO of SPi, said, "We have been tracking
companies in the medical billing space for some time with the goal of
finding one to acquire whose corporate culture and values match our own.
SSC fits the bill. Their annuity-based business nicely complements our
existing Healthcare platform and provides an excellent entry point for us
into this rapidly growing $25 billion industry." Cu went on to say: "The
inclusion of SSC's service offerings in our Healthcare portfolio allows us
to further strengthen our relationships with the more than 400 hospitals,
multi-specialty clinics and physician practices that we currently serve."
The US healthcare industry accounts for 15% of US GDP and is the largest
segment in the US economy. In 2003, US healthcare expenditures reached
nearly $2.0 trillion. Healthcare costs have continued to rise by 18%
annually since then. Currently $4.2 billion in medical billing work is
being outsourced each year, and spending in this area is expected to grow
by 7% annually. The medical billing sector is ideally suited for
outsourcing due to the high volume of transactions and the ongoing rising
costs of healthcare.
"At US$ 44 million, the SSC acquisition is the largest to date for SPi.
Further it is an excellent example of how we are implementing our strategic
plan to accelerate growth and strengthen our position in the BPO arena,"
stated Ray C. Espinosa, President and CEO of ePLDT. "We are delighted to
support SPi's expansion of its Healthcare platform and to be adding another
annuity-based business to our overall BPO portfolio."
"The management team of SSC is equally pleased with the business
combination," stated Mike Beninato, President and CEO of SSC. "Both SPi and
SSC share a vision to reduce healthcare costs while improving quality
through streamlining business processes, and improving patient care. This
acquisition is tremendous news for our customers and employees, who will
benefit from the resources available from SPi. We look forward to SSC's
continued growth and profitability in the years ahead."
About SPi
SPi, is a leading full-service BPO provider with offices and facilities
across North America, Europe, and Asia. Together with its sister company,
Ventus, SPi has 11,000 employees delivering a wide range of call center and
knowledge-based outsourcing solutions to diversified markets, including
financial services, healthcare, legal and publishing. SPi consistently
improves operating efficiency, lowers costs and helps to strengthen the
competitive position of more than 500 customers.
SPi is 100% owned by ePLDT, Inc. ePLDT, Inc. is a wholly owned subsidiary
or the Philippine Long Distance Telephone Company (PLDT), the leading
telecommunications provider in the Philippines. PLDT is listed on the
Philippine Stock Exchange (PSE : TEL ) and its American Depository Shares are
listed on the New York Stock Exchange (NYSE : PHI ).
For more information on SPi, visit www.spi-bpo.com.