Dec 11,2024
Mumbai: Metropolis Healthcare Limited, a pathology laboratory chain, has announced its approval to acquire Delhi NCR-based Core Diagnostics. Led by Ameera Shah, this acquisition aims to strengthen Metropolis’ advanced cancer testing capabilities, expand its presence in Northern and Eastern India, and boost its share in the specialized diagnostics market across the country.
Metropolis will acquire a 100 per cent stake in Core Diagnostics through a combination of cash and stock, financing 55 per cent of the transaction in cash and 45 per cent through an equity swap, totalling INR 246.8 crores. Core Diagnostics registered revenue of INR 110 crores in FY 2023-24. The equity issuance is subject to shareholder approval, and the acquisition is expected to be completed within 60 days.
Commenting on the acquisition, Ameera Shah, Promoter and Executive Chairperson, Metropolis Healthcare Limited, said: “We recognize the significant potential of the rapidly growing Indian Oncology (cancer) market, which is expected to expand at a CAGR of 17.5per cent from 2023 to 2028.This growth, driven by rising cancer incidences, technological advancements, improved healthcare access, and increased awareness, presents a substantial opportunity for Metropolis to truly support the Indian patients with access to world-class diagnostics. With approximately 1.4 million new cancer cases and nearly a million deaths annually in India, there is a critical need for advanced cancer testing nationwide.”
Surendran Chemmenkotil, Chief Executive Officer, Metropolis Healthcare Limited, said: “With the majority of Core’s revenue coming from Northern and Eastern India, this acquisition provides an opportunity to connect with leading hospitals in these regions. It enables us to cross-sell Metropolis’ comprehensive range of tests and services while offering Core’s advanced cancer testing to our existing customers. This strategic integration enhances our ability to meet the diverse needs of healthcare providers and patients and expand our presence.”
Dinesh Chauhan, Chief Executive Officer, Core Diagnostics, said: “This new chapter with the Metropolis family is both exciting and deeply meaningful. Core Diagnostics began in 2012 as Zoya Brar’s visionary dream and as a team we’ve built a foundation of hope in advanced cancer testing.”
Source: Healthworld