Healthcare business process outsourcing major CBay Systems India will acquire two US-based companies for $20 million, its managing director and CEO Raman Kumar said on Thursday.

The deals would be over in a month and the two companies to be bought out would add 70 US-based clients to CBay, he told reporters in Bangalore.

Kumar, however, declined to name the two companies at this stage.

CBay, was on expansion drive, he added. The company that has in its investor list names such as GMO Emerging Markets, Kingdon Capital, TDA Capital Partners and Godrej Industries [Get Quote], is all set to inaugurate a 25,000 square ft centre in Bangalore next week, its third in the city. The centre will have 500 seats capacity to accommodate over 800 employees on a two-shift basis.

Kumar also said the Chennai centre would have an employee strength of 150 this year that would go upto 400 in 18 months. The company's Hyderabad centre would increase in employee strengh from 600 to 2,500 in two-three years.

CBay currently employs over 2200 people in India, with another 2500 people employed by its partners and franchisees in 35 centres across the country. Its US operation employs about 300 people.

"By 2008, we are aiming to have a total headcount of 10,000," Kumar said.

He said CBay would look at making a $50 million to $100 million acquisition in the US by the year-end. The company was targetting annual revenues of $400 million to $500 million in the coming four-five years, he said.

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