Apollo acquires Nova Speciality in Rs 145 cr deal

This acquisition will also mark entry of Apollo in new markets such as Mumbai, Jaipur and Kanpur, says Joint Managing Director

Healthcare major Apollo Hospitals Enterprise today announced its acquisition of Nova Speciality Hospitals in an upto Rs 145 crore deal as it aims to create business of Rs 500 crore in five years from short stay/day surgery centres.

Commenting on the acquisition, Apollo Hospital Enterprises Ltd Joint Managing Director Sangita Reddy said: "Apollo Health and Lifestyle Ltd (AHLL) is currently present in the secondary care segment through the Day Surgery and Cradle formats.

"Given the immense potential and the need for quality healthcare delivery closer to the home, this acquisition will enable AHLL to expand its footprint."

Reddy further said: "This acquisition will also mark entry of Apollo in new markets such as Mumbai, Jaipur and Kanpur.

"The combined network will clock turnover of Rs 115-125 crore for the year ending March 2015. The deal size will be in the range of Rs 135 to 145 crore subject to final closure," Apollo said in a BSE filing

On future growth targets, AHLL CEO Neeraj Garg said: "AHLL is aiming to create a business of Rs 500 crore in 5 years in the space of multi-speciality short stay/day surgery centres."

Nova Speciality Hospital's existing centres will serve as new centres under Apollo brand name. Nova has 11 centres in 8 cities. AHLL has close to 100 operational centres in India and Middle East.