The board of Metropolis Healthcare has approved the acquisition of Delhi’s Core Diagnostics for ₹246.8 crore, making it a leading cancer testing company in the country, said Ameera Shah, Metropolis Promoter and Executive Chairperson.
Cancer is one of two critical therapeutic areas, Shah told businessline, and the company would be able to offer tests and biopsies to oncogenomics, at its centres across the country, she said. “With approximately 1.4 million new cancer cases and nearly a million deaths annually in India, there is a critical need for advanced cancer testing nationwide,” she added.
The Core Diagnostics transaction comes in less than six months of Shah being redesignated as Executive Chairperson and Whole-time Director, from promoter and Managing Director.
Responding to whether Metropolis will look to add radiology to support services needed by people with cancer, she said, “We are not so keen on the advanced radiology piece. Even though from a customer viewpoint, we see value to radiology and pathology being potentially under the same roof. The Core Diagnostics transaction also gives Metropolis greater access in the Northern and Eastern regions of the country.
Metropolis has two strategic goals —increase B2C (business to consumer) interface and increase specialisation. Core fit into this plan, she said, adding that it would remain as the oncology brand under Metropolis. “The valuation we are paying is really about 1.6 times revenue based on FY25 revenue,” she said.
Deal details
Metropolis will acquire 100 per cent stake in Core Diagnostics through a combination of cash and stock, financing 55 per cent of the transaction in cash and 45 per cent through an equity swap, she said. The equity issuance is subject to shareholder approval, and the acquisition is expected to be completed in 60 days.
The Delhi/NCR headquartered Core operates in 200 cities and offers over 1,300 high-end tests, with a primary focus on cancer, according to details shared by the companies. Core clocked revenues of ₹110 crores in FY24. Metropolis ended March 2024 with revenues of ₹1189 crore.
Core has a staff-strength of about 550 people and franchisee partners in about nine countries, said Avadhut Joshi, Metropolis Chief Business Development Officer.
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