Sterling Accuris Wellness Pvt Ltd, a pathology-focused diagnostic lab chain, on Wednesday said it has bought Ahmedabad-based pathology service provider VIP Labs to strengthen its presence in Gujarat.
However, the company did not disclose the financial details of the transaction.
With this acquisition, Sterling looks to merge expertise, experience and resources to expand its customer base, network, market presence and geographical reach. Moreover, it will also open opportunities for the company’s growth and diversification by utilising new technologies.
VIP Diagnostics has a presence in the Ahmedabad region since 1997 and operates a group of 14 laboratories in Bodakdev, Prernatirth, Bopal, Gota, South Bopal, Shahibaug, Gandhinagar, Meghaninagar, Asarva, Nana Chiloda, New Ranip, New Vasna, Motera, and Shilaj. It performs routine and specialized pathology tests, including biochemistry, hematology, immunology, toxicology, histopathology, cytology, clinical pathology, genetics, and molecular biology tests.
"This acquisition provides an exceptional opportunity for both companies to mutually leverage their strengths. Patrons of VIP Labs will benefit from access to a high-end test menu offered by Sterling Accuris, encompassing immunohistochemistry, molecular testing and genetic testing," said Ankush Gupta, chief executive at Sterling Accuris Diagnostics.
Founded in 2015, Sterling Accuris currently operates 65 labs and 220 collection centres.
In 2021, Sterling raised $34 million from a fund managed by Morgan Stanley Private Equity Asia to penetrate deeper into markets and enter new geographies.
India's fragmented preventive healthcare and diagnostics segment is primarily dominated by standalone centers, with notable players such as Apollo and Metropolis. Other prominent chains in this sector include Dr Lal PathLabs Ltd, Thyrocare Technologies Ltd, and SRL Diagnostics, a unit of Fortis Healthcare.
Significant consolidation activity has been observed in this segment. In April, SRL Diagnostics acquired a pathology lab based in Delhi. In March, Redcliffe Lifetech Pvt. Ltd purchased a diagnostic lab chain, aiming to provide premium-priced health services.
In February, Molbio Diagnostics Pvt. Ltd, a diagnostics chain based in Goa, obtained a 70% stake in Prognosys Medical Systems, located in Bengaluru. Molbio had previously secured funding from Temasek Holdings, a state investment firm based in Singapore, at a unicorn valuation in September of the previous year.
