By Leroy Leo and Rishika Sadam
BENGALURU (Reuters) -India’s Manipal Hospitals said on Monday it will acquire an 87% stake in Medica Synergie as it aims to expand its footprint in eastern India.
The transaction is valued at 14 billion rupees ($167.75 million), three sources familiar with the matter told Reuters, on conditions of anonymity.
Manipal Hospitals and Medica Synergie did not immediately respond to Reuters’ requests for comment on the financial terms of the deal.
With the acquisition of Medica — which has hospitals in eastern Indian cities like Kolkata, Siliguri and Ranchi — Manipal Hospitals said it expects to treat 7 million patients annually and will operate across 37 hospitals in 14 states, increasing its hospital bed count from over 9,500 to more than 10,500.
Manipal Hospitals, which had served nearly five million patients last year through its 29 hospitals in 16 cities, acquired FMCG-to-realty conglomerate Emami Group’s AMRI Hospitals last September.
India’s healthcare market is expected to grow nearly three-fold to $458 billion in 2030, as per global consulting firms Boston Consulting Group and B Capital.
An improving economy is driving strong demand for healthcare-related services in India’s smaller cities and towns, driving top private hospital chains to tap into the market by mostly acquiring well-equipped facilities.
Singapore-based investment firm Temasek holds a 51% stake in Manipal Health and an 87% interest in Medica Synergie.
($1 = 83.4571 Indian rupees)
(Writing by Ashna Teresa Britto and Kashish Tandon; Editing by Shailesh Kuber and Sohini Goswami)
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