The firm’s board has accredited the acquisition partly by means of money consideration of Rs 511 crore and partly by issuance of up to 4,95,000 fairness shares of a face worth of Rs 2 every on a preferential foundation, to the promoter group of Hitech, Metropolis Healthcare mentioned in a regulatory submitting.
“The cash consideration will be funded through internal accruals and debt of up to Rs 300 crore,” it added.
S P Ganesan, its promoter and founder, can be a part of the management crew for the following few years to allow a easy transition and integration with Metropolis, the submitting mentioned.
By the acquisition, Metropolis will get an entry to 31 laboratories, together with three NABL- and ICMR-accredited laboratories and 68 assortment centres of Hitech. The acquisition is predicted to be accomplished inside three months, it added.
Metropolis Healthcare Managing Director Ameera Shah mentioned, “In line with the strategy to grow, gain market share and increase B2C (business-to-consumer) revenues in focus cities, we are acquiring Hitech Diagnostic Centre which will strengthen our leadership position in the South India market.”
Objective of Metropolis with the acquisition is to enhance its market share in focus cities of Chennai and Bengaluru and turn out to be leaders in some tier-2 cities in southern India, she added.
“We will capture the mid-segment of the market, increase our B2C revenue contribution and leverage scale benefits through cost synergies,” Shah mentioned.
Dr Ganesan’s Hitech Diagnostic Centre Pvt Ltd Promoter S P Ganesan mentioned Metropolis is the precise model to carry ahead the legacy of Hitech. “We shall ensure a smooth integration of Hitech’s business with Metropolis to increase the value for the combined entity through cost synergies and create a much stronger consumer brand in South India.”
The acquisition will enable Metropolis to enhance its B2C enterprise in focus cities of Chennai and Bengaluru. It will profit by optimisation of operational prices in the areas of procurement, provide chain, administration and assist useful resource, laboratory community and again workplace infrastructure, Metropolis Healthcare mentioned.
It will additional enable Metropolis model to make deeper inroads in completely different buyer segments throughout key markets in South India, it added.
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