Metropolis Healthcare acquires 100% stake in Core Diagnostics for ₹247 crore – CNBC TV18

Mumbai-based medical diagnostics company Metropolis Healthcare Ltd on Monday (December 9) said its board of directors has approved the acquisition of Delhi-NCR-headquartered Core Diagnostics for ₹ 246.83 crore.

This acquisition will enhance Metropolis’ capabilities in advanced cancer testing while deepening its presence in northern and eastern India and driving market share expansion in the specialised segment across the country.

Metropolis will acquire a 100% stake in Core Diagnostics through a combination of cash and stock, financing 55% of the transaction in cash and 45% through an equity swap, totalling ₹246.8 crore.

Also Read: Metropolis Healthcare reports a profitable Q2, boosted by tier 3 cities

Core Diagnostics registered revenue of ₹110 crore in FY 2023-24. The equity issuance is subject to shareholder approval, and the acquisition is expected to be completed within 60 days.

Founded in 2012, Core Diagnostics operates in 200 cities in India, with a state-of-the-art NABL- and CAP-accredited laboratory in Gurugram, backed by a regional reference lab in Hyderabad and seven satellite labs across India.

Core Diagnostics offers over 1,300 high-end tests, with a primary focus on cancer, serving more than 6,000 speciality prescribers, including 1,600+ top cancer specialists. The company has achieved a 22% revenue CAGR over the past three years and is led by a professional team. Core Diagnostics was formerly owned by private equity companies.

Also Read: Metropolis Healthcare reports 31% rise in profit in first quarter, revenue rises 13%

Ameera Shah, Promoter and Executive Chairperson, Metropolis Healthcare, said, “We recognise the significant potential of the rapidly-growing Indian oncology (cancer) market, which is expected to expand at a CAGR of 17.5% from 2023 to 2028. This growth, driven by rising cancer incidences, technological advancements, improved healthcare access, and increased awareness, presents a substantial opportunity for Metropolis to truly support the Indian patients with access to world-class diagnostics.”

Dinesh Chauhan, Chief Executive Officer of Core Diagnostics, said, “This new chapter with the Metropolis family is both exciting and deeply meaningful. Core Diagnostics began in 2012 as Zoya Brar’s visionary dream and as a team, we’ve built a foundation of hope in advanced cancer testing.”

Alivio Advisors served as the exclusive financial advisor to Metropolis Healthcare Limited. Saraf & Partners acted as legal advisors, while PwC conducted financial due diligence.

Shares of Metropolis Healthcare Ltd ended at ₹2,187, up by ₹51.15, or 2.39%, on the BSE.