Metropolis Healthcare Ltd, India’s second-largest pathology chain, said Monday it will acquire oncology-focused diagnostic services provider Core Diagnostics Pvt Ltd for Rs 246.83 crore ($29 million).
The deal includes a cash consideration of Rs 135.76 crore and a share swap for the remaining amount, Ameera Shah-led Metropolis said in a stock-exchange filing.
The transaction is likely to be completed within 60 days from the signing of definitive agreements, subject to shareholder approval.
The announcement comes about two-and-a-half months after VCCircle first reported that Core Diagnostics had received acquisition offers from strategic buyers.
The acquisition of Core Diagnostics will strengthen Metropolis Healthcare’s portfolio in advanced cancer testing and expand its footprint in northern and eastern India, the Mumbai-listed company said. The acquisition will also help Metropolis leverage Core Diagnostics’ existing relationships with top cancer specialists and hospitals in the region.
“This move aligns perfectly with our M&A strategy of acquiring high-quality platforms that are sub-scale and can be scaled rapidly through enhanced governance, management, and the extensive distribution network of Metropolis,” said Avadhut Joshi, chief business development officer at Metropolis.
Ameera Shah, chairperson at Metropolis, told VCCircle that the company was “actively exploring” opportunistic acquisitions in the therapeutic sector.
“We are having conversations with multiple firms, including companies specializing in advanced, high-end specialty testing, which align with our focus on technical capabilities. Additionally, we are considering smaller acquisitions in the northern and eastern regions of the country. In markets where our consumer brand presence is limited, acquiring a local leader could provide a strong platform for entry and growth,” she added.
Established in 1981, Metropolis is the second-largest diagnostics chain in India. It has a presence in over 700 towns and cities across 22 states and three Union Territories. It offers a range of more than 4,000 plus tests, including advanced tests for the diagnosis of cancer, neurological disorders, infectious diseases, and various genetic abnormalities.
Founded in 2012, Core Diagnostics specializes in diagnostic services, particularly in the field of oncology. The Gurgaon-headquartered company covers over 200 cities and provides more than 1,300 tests.
Core Diagnostics’ net sales declined to Rs 91.8 crore for FY23, from Rs 104.3 crore in the previous year, while losses widened to Rs 12.8 crore from Rs 0.8 crore. The company recorded revenue of Rs 110.32 crore in 2023-24.