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Metropolis Health completes acquisition of Hitech

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Metropolis Healthcare has completed the acquisition of Dr Ganesan's Hitech Diagnostic Centre (Hitech) along with its subsidiary Centralab Healthcare Services (Centralab) on Friday, 22 October 2021 for a cash consideration of Rs 636 crore.

The acquisition has been funded through internal accruals and debt of Rs 300 crore. Dr. Ganesan, the promoter and founder of Dr Ganesan's Hitech Diagnostic Centre (Hitech), will be part of the leadership team for next few years to enable a smooth transition and integration with Metropolis Healthcare. Metropolis Healthcare will also get access to 31 laboratories including 3 National Accreditation Board for Testing and Calibration Laboratories (NABL) and Indian Council of Medical Research (ICMR) accredited laboratories and 68 collection centres of Hitech. Post completion of the acquisition, Hitech and Centralab has become wholly-owned subsidiary and step down wholly owned subsidiary respectively of the company.

The acquisition of of Dr Ganesan's Hitech Diagnostic Centre (Hitech) along with its subsidiary Centralab Healthcare Services (Centralab) will help Metropolis Healthcare in - strengthening the leadership position, increase B2C contribution in focus cities, enable deeper penetration in mid-segment of the market and enhance profitability through revenue and cost synergies. On FY21, the revenue of Dr Ganesan's Hitech Diagnostic Centre (Hitech) stood at Rs 124 crore, rising 49% Y-o-Y. The business momentum also continued in FY22 with strong growth across all parameters, the press release highlighted.

Metropolis Healthcare's consolidated net profit surged to Rs 74.92 crore in Q1 FY22 from Rs 2.88 crore in Q1 FY21. Net sales surged 128.30% year-on-year (Y-o-Y) to Rs 326.76 crore during the quarter.

Shares of Metropolis Healthcare shed 1.12% to end at Rs 2,826.50 on Friday, 22 October 2021. Metropolis Healthcare is a leading diagnostics company in India with a widespread presence across 19 states in India.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Sat, October 23 2021. 14:00 IST