M&A: Sterling Accuris Diagnostics acquires Ahmedabad-based VIP Labs

by | Aug 10, 2023 | Insights, Merger & Acquisitions | 0 comments

M&A: Sterling Accuris Diagnostics acquires Ahmedabad-based VIP Labs

 

Transaction:

About VIP Labs:

  • Established in 1997, VIP Labs have 14 laboratories working 24 x 7 across Ahmedabad.
  • VIP Labs has NABL certification, is accredited for ISO 9001:2015, and is certified by Bio-Rad USA, AIIMS New Delhi, and CMC Vellore for External Quality Control.

About Sterling Accuris Diagnostics:

  • Founded in 2015, Sterling Accuris Diagnostics has a chain of NABL-accredited pathology laboratories with 65 Labs and 220 collection centres. 
  • Sterling is a strong player in Gujarat, and has its presence in Rajasthan (Jodhpur) and Madhya Pradesh with labs in Indore, Ratlam, and Delhi NCR.
  • In 2021, Sterling raised USD 34 Million from a fund managed by Morgan Stanley to penetrate deeper into markets and enter new geographies.

Rationale:

  • The acquisition would allow the company to penetrate into areas where it doesn’t have presence and expand its offerings to a larger base of customers.
  • The acquisition is seen as a strategic move that will further strengthen Sterling Accuris Diagnostics’ robust and influential presence in the diagnostics industry of Gujarat.
  • VIP Labs has a unique annual subscription-based model for its patrons, which will help Sterling Accuris strengthen its presence in the direct-to-patients segment.
  • Diagnostics segment is primarily dominated by standalone centers, with notable players like Dr. Lal PathLabs Ltd, Thyrocare Technologies Ltd, and SRL Diagnostics (Unit of Fortis Healthcare).
  • Consolidation activity is now being observed in this segment. In April 2023, SRL Diagnostics acquired Lifeline Laboratory, Delhi, In March 2023, Redcliffe Lifetech Pvt. Ltd. acquired Medicentre Sonography and Clinical Lab, Udaipur aiming to provide premium-priced health services.
  • In February 2023, Molbio Diagnostics Pvt. Ltd. acquired 70% stake in Prognosys Medical Systems, Bengaluru.
  • In August 2022, PharmEasy acquired 66.1% stake in diagnostic chain Thyrocare Technologies Ltd. through its parent company, API Holdings Ltd. for a deal worth Rs. 4,546 Crores.

Acknowledgements: 

RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)

Disclaimer:

This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.

This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction. 

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