US-based private equity firm TA Associates is reportedly in talks to acquire a majority stake in Vee Healthtek, an Indian revenue cycle management firm, for $250 million or approx. Rs 2,100 crore. If the deal comes through this will mark TA Associates' entry into India's RCM market.

According to a report in Economic Times, TA Associates will acquire a majority stake in Vee Healthtek, while the promoter, the Chennai-based Valliappa family, will retain a minority stake.

Vee Healthtek, owned by South India's Sona Group and is established in 2000 by Chocko Valliappa as Vee Technologies, the firm rebranded itself as Vee HealthTek in 2024. The firm provides revenue cycle management, claims processing for leading Insurance companies, professional billing, and IT services to hospitals, pharmaceutical companies, and healthcare providers globally.

With a workforce of around 5,000 employees, Vee Healthtek is projected to reach $100 million in revenue by FY25.

This acquisition is the second such investment made by TA Associates in India and its first investment being in Chennai-based Zifo RnD Solutions, a leading provider of informatics solutions globally. The company had invested $250 million in 2022.The firm is known for its strategic acquisitions focusing on  technology, healthcare, and financial services.

According to BCC Research, the global healthcare business process outsourcing market is expected to grow from $151.9 billion in 2022 to $259.5 billion by 2028, with an estimated annual growth rate of 9.7%. This anticipated market growth reflects the increasing demand for healthcare IT solutions in the country, as organizations target to enhance efficiency by streamlining operations by managing billing processes and revenue inflows, while improving cash flow and managing regulatory compliance.

"We are steadfast in looking at growing the business organically. And we are excited to be crossing $100 million revenue soon," said Chocko Valliappa, founder & CEO of Vee Healthtek, as reported by the Economic Times.

The acquisition is expected to strengthen TA Associates' presence in the healthcare IT domain, allowing Vee Healthtek to expand its services in the global healthcare sector.