Metropolis Healthcare, a leading diagnostics provider, announced on Monday that its wholly-owned subsidiary, Metropolis Clinical Pathology, will acquire Agra-based Scientific Pathology in a deal valued between Rs 55 crore and Rs 83 crore.
The agreement, structured as a business transfer through a slump sale, involves Metropolis Clinical Pathology acquiring and managing all laboratories and collection centers currently operated by Scientific Pathology in Agra and surrounding areas. The final acquisition price will be calculated at 12.2 times the adjusted EBITDA, assessed over a predefined period.
Strategic Move to Strengthen Market Position
This acquisition marks a significant strategic step for Metropolis Healthcare, as it enhances the company’s foothold in Western Uttar Pradesh—a region experiencing rapid growth in healthcare services. Metropolis aims to accelerate its Business-to-Consumer (B2C) expansion, capturing further growth opportunities within Uttar Pradesh and extending its reach to surrounding markets.Ameera Shah, Promoter and Executive Chairperson of Metropolis Healthcare, emphasized the synergy between the two companies. "Scientific Pathology's strong B2C focus and 40-year legacy align seamlessly with our vision to lead in these markets," Shah said.
Expanding in a High-Potential Diagnostic Market
The Uttar Pradesh diagnostics market, valued at approximately Rs 2,000 crore, stands out as one of North India’s fastest-growing healthcare segments. Through this acquisition, Metropolis Healthcare is strategically positioned to capitalize on the region's potential.Ashok Kumar Sharma, Founder of Scientific Pathology, expressed optimism regarding the integration. "We look forward to a seamless integration that enhances healthcare access and benefits patients, doctors, and healthcare providers across Western Uttar Pradesh," Sharma remarked.
Transaction Structure and Implementation
The acquisition will be implemented through a Securities Subscription Cum Shareholders' Agreement (SHA), supported directly by Metropolis Healthcare. This structured transaction will enable the company to integrate Scientific Pathology’s extensive network effectively, providing improved diagnostic services throughout the region.With this acquisition, Metropolis Healthcare solidifies its commitment to expanding accessible, high-quality diagnostic healthcare, enhancing patient care, and fostering long-term growth in Northern India's healthcare market.
