Bajaj Finserv Health Ltd, a subsidiary of non-banking finance company Bajaj Finserv Ltd, has agreed to acquire insurance claims processor Vidal Healthcare Services Pvt Ltd and its two units at an enterprise value of Rs 325 crore ($39 million).
Under the transaction, Vidal Health Insurance TPA Pvt Ltd and VH Medcare Pvt Ltd, two wholly owned subsidiaries of VHC, will become indirect subsidiaries of BFS Health and Bajaj Finserv. BFS Health will also indirectly acquire a 21.3% stake in IntentHealth Technologies Pvt. Ltd, which is an associate of Vidal Healthcare.
The acquisition is likely to close by the end of March, Bajaj Finserv said in a statement Tuesday.
The company said that the move enhances its presence in the healthcare sector, particularly in addressing consumer needs related to hospitalization. The acquisition positions Bajaj Finserv Health to offer comprehensive healthcare services, wellness, and hospitalization benefits. Additionally, it strengthens the Pune-based company’s role in supporting various healthcare initiatives by the government and insurance regulator.
Vidal Healthcare, one of India's largest healthcare administrators, oversees a premium of over Rs 5,000 crore through Vidal Health Insurance TPA.
Bajaj Finserv said that, in order to ensure continuity of service for existing clients of Vidal Health Insurance TPA, the core management team of the unit will continue.
“As health-tech changes the dynamics of healthcare administration in India, being a part of Bajaj Finserv enables us to bolster our technology capabilities and fuel quality focused expansion,” said Girish Rao, chairman and managing director of Vidal Health.
Bajaj Finserv Health boasts a network of over 1,00,000 doctors, 5,500 labs, and 2,100 hospitals. It provides a digital platform for consumers to access healthcare benefits and connects them with a wide array of healthcare and wellness practitioners.
Bajaj Finserv is a prominent financial services firm in India with consolidated total income of Rs 82,072 crore in FY23. It serves over 200 million customers. The company and its subsidiaries offer a diverse portfolio of financial services, including savings products, loans, mortgages, auto financing, insurance services, and investments.
JM Financial Ltd was the exclusive financial advisor to Bajaj Finserv Health. Ernst & Young conducted financial and tax due diligence, and Chitale Legal provided legal advisory services. PwC Corporate Finance acted as the exclusive financial advisor to Vidal Health.