STI Knowledge Inc. has bought HPS Paradigm, a Georgia-based healthcare administrative services company, for an undisclosed sum.

Based in Atlanta, STI is focused on the new market niche of Business Process Outsourcing (BPO) services, which integrate voice, technology and back-office processing services.

“I view HPS as a critical factor in positioning STI for success within the BPO marketplace, and it allows us to expand our existing service offerings within the Healthcare and Insurance industries,” said Satish Sanan, chairman and CEO of STI. “HPS is truly a diamond in the rough, and an extremely synergistic business to our own, having many of the same core values we embrace everyday at STI. The first of which is an unyielding commitment to our customers and consistently providing the highest quality of service possible to them.”

This acquisition comes shortly after Sanan led two rounds of financing into STI, with other investors, including Mellon Ventures and BV-Cornerstone Ventures. The first investment was completed in March 2003, and the same group of investors has raised a total of $21 million in funding to date.

STI was founded in 1995 and currently employs approximately 300 professionals throughout the United States. Clients include Harley Davidson, Polo Ralph Lauren, United Healthcare Group, Yahoo, DHL Worldwide, Deutsche Bank, Fannie Mae and Chick-fil-A.

HPS Paradigm, established in 1976, currently has approximately 80 employees within its headquarters in Atlanta and other offices throughout Georgia in Tifton, Savannah, and Macon. The founder and CEO of HPS, Mike Dendy, will continue working at STI, and run its healthcare division.

“This merger provides significant benefits to our clients, our employees, and our company in general, by expanding our resources, and opening new avenues of service offerings to our customers,” Dendy said. “STI’s focus on cutting edge technology and customer service acumen will propel us to the next level of proficiency within our industry.”

HPS Paradigm: www.hpspa.com

STI Knowledge: www.stiknowledge.com