Metropolis Healthcare, a leading diagnostic service provider, is set to acquire Chennai-based Dr Ganesan’s Hitech Diagnostic Centre Pvt Ltd for a cash consideration of Rs 511 crore.
Metropolis will acquire 100 per cent equity of Dr Ganesan’s Hitech Diagnostic Centre in a cash and stock deal. The entity is a debt free company and will issue up to 495,000 equity shares of face value Rs 2 each on preferential basis, subject to shareholders approval, to the promoter group of Hitech. The cash consideration will be funded through internal accruals and a debt of up to Rs 300 crore.
Dr Ganesan, promoter and founder, will be part of the leadership team for the next few years to enable a smooth transition and integration with Metropolis.
Metropolis will get access to 31 laboratories including three NABL and ICMR accredited laboratories and 68 collection centres of Hitech. The acquisition is expected to be completed within three months.
The acquisition will allow Metropolis to increase its B2C business in focus cities of Chennai and Bengaluru and benefit through optimisation of operational costs in the areas of procurement, supply chain, administration and support resource, laboratory network and back office infrastructure. It will further allow the Metropolis brand to make deeper inroads in different customer segments across key markets in South India, said the company.
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