Health insurance third party administrator Medi Assist on Monday said it will acquire 100% stake in Mumbai-based Medvantage Insurance TPA Pvt. Ltd (formerly UnitedHealthcare Parekh Insurance TPA).
However, the company did not disclose the size of the deal.
Bengaluru-based Medi Assist will fund the deal using cash from its balance sheet, it said in a statement.
The acquisition will help the leading TPA to expand its market share as it acquires the 20-year-old corporate-focused company. Medi Assist reported a total income of Rs 393 crore in FY22. Medvantage had reported a total income of Rs 28 crore in FY21 as per its latest available annual report.
Medi Assist, which had filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) in May 2021, was looking to raise over Rs 850 crore in its initial public offering.
“Medi Assist will now service over Rs 10,000 crore of health insurance premiums as part of its corporate portfolio and also command a market share of close to 30% in this segment,” the company said.
The deal will help Medvantage and its customer access to Medi Assist’s pan-India network of hospitals, AI and ML, automation and fraud prevention technologies, the statement added.
“The digital-first service focus at Medi Assist has been the cornerstone of our growth story. The acquisition is a great strategic and cultural fit,” said Satish Gidugu, CEO of Medi Assist.
Medi Assist is backed by investors including Bessemer Health and Investcorp Private Equity. This is Medi Assist’s third acquisition in the space, which previously acquired Dedicated Healthcare Services (DHS) TPA in 2016 and Medicare TPA in 2018. It has a portfolio of over 9,000 corporate clients.
"Medvantage, one of the first and only specialized corporates focused TPA, and Medi Assist share similar values, expertise, capabilities, and vision. This acquisition ensures that Medi Assist is positioned to deliver best-in-class service to Medvantage’s corporate customers and to ensure that we remain laser focused on a member-first agenda,” said Nimish R. Parekh, Chairman of Medvantage.