Metropolis Healthcare Ltd has completed the acquisition of Dr. Ganesan’s Hitech Diagnostic Centre Pvt. Ltd. (Hitech) along with its subsidiary Centralab Healthcare Services Private Limited.
“I am pleased to share that we have successfully completed the acquisition of Hitech Diagnostic centre. In line with our growth strategy, this acquisition will enable Metropolis to gain market share, strengthen our leadership position in South India market and increase the B2C share of the business. This acquisition will also enable Metropolis to cater to mid segment of the market and leverage scale benefits,” Ameera Shah said.
“Our M&A strategy revolves around acquiring high-quality, profitable B2C businesses with a scientific approach to diagnostics. We will continue to evaluate such high-quality profitable and scalable opportunities and take a pragmatic view on M&A.” Ameera Shah, Managing Director, Metropolis Healthcare Ltd.
The stock ended at Rs2,771.90 down by Rs54.6 or 1.93% from its previous closing of Rs2,826.50 on the BSE.
“I am very pleased to be joining the MHL family and believe there is a big opportunity to serve the people and grow Hitech under MHL umbrella. We share similar business ethos as Metropolis with focus on quality, accuracy, and highest level of customer service. I look forward to work closely with the MHL team for the smooth transition.” Dr. SP. Ganesan, Promoter, Dr. Ganesan’s Hitech Diagnostic Centre Pvt. Ltd.
Strategic Rationale of the Acquisition:
- Strengthening the Leadership Position – With the acquisition of Hitech Diagnostics, Metropolis will strengthen its position as 2nd largest Diagnostics company in India and largest brand in South and West India.
- Increased B2C Contribution in Focus Cities – Hitech, being a focused B2C player with 65% revenue contribution from B2C business will allow Metropolis to increase its B2C business in focus cities of Chennai and Bengaluru enhancing our direct to customer business.
- Deeper Penetration in mid-segment of the market – Metropolis being focused on the premium end of the market will get access to mid-segment of the market which Hitech primarily caters to expanding the addressable market size for Metropolis.
- Enhance Profitability through revenue and cost synergies – Enhance revenue through product offering of the combined business, improved customer experience and achieve cost synergies through optimization of operational costs in the areas of procurement, better efficiencies in supply chain, administration and support resource, laboratory network and back-office infrastructure.