Medi Assist plans to acquire 100% stake in Medvantage Insurance TPA

26 Sept 2022 , 09:57 AM

Medi Assist, the country's biggest third-party administrator (TPA) for health insurance, is slated to acquire a 100% stake in Mumbai-based Medvantage Insurance TPA, one of the country's oldest TPAs dealing with prominent corporate clients such as Microsoft and Wells Fargo.

According to three persons familiar with the subject, the companies inked a final agreement last week to merge and are now seeking clearance from the industry regulator Insurance Regulatory and Development Authority (IRDA).

According to industry experts, the sale is estimated to be worth about Rs35 crore. The company plans to fund this deal using cash from its balance sheet.

According to Medi Assist chief executive Satish Gidugu, the purchase would assist the country's largest TPA to increase its market share on the corporate side of the company to 30% from 27%.

According to the firm, the merger would provide Medvantage consumers access to Medi Assist's cashless hospital network, OPD services, and a host of upcoming solutions such as a navigator (for out-of-pocket cost calculation, financing, and so on).

Medi Assist, founded in 2000, has constructed a pan-India hospital network, developed technology to streamline the claims settlement cycle, and implemented mobile applications to ease policyholder access and experience.

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