Metropolis Acquires Core Diagnostics for ₹247 Crore to Boost Cancer Testing Expertise

10 Dec 2024 , 04:16 PM

Metropolis Healthcare Ltd. has said it will acquire Core Diagnostics for ₹246.83 crore. The deal would help Metropolis strengthen its capability in advanced cancer diagnostics and expand its presence in northern and eastern India.

This is a 100% stake purchase that will be funded through 55% cash and 45% equity swap. It expects completion in 60 days, after shareholders give their nod.

Core Diagnostics was established in 2012 and has its reach across 200 cities in India with state-of-the-art facilities, along with a NABL- and CAP-accredited lab located at Gurugram, and seven satellite labs in Hyderabad. It offers 1,300+ specialized tests, with particular focus on oncology, and caters to more than 6,000 health care specialists, 1,600+ among which are leading cancer specialists.

The company reported revenue of ₹110 crore for FY 2023-24, with the company having witnessed a robust 22% CAGR over the last three years.

Metropolis Chairperson Ameera Shah was optimistic about the Indian oncology market, which is growing at a CAGR of 17.5% from 2023 to 2028, driven by better healthcare access, technological progress, and rising cancer cases. Core Diagnostics Chief Executive Dinesh Chauhan is excited about the consolidation. The company journey is special because of what has been envisaged by founder Zoya Brar.

Alivio Advisors advised Metropolis exclusively for acquisition. The legal advice comes from Saraf & Partners while the financial due diligence was executed by PwC. The acquisition in its strategic nature now enables Metropolis to be a pan-country specialist diagnostic leader, having its strengths elevated to deliver advanced solutions to patients across India.