Metropolis Healthcare, led by Ameera Shah, has announced the acquisition of Core Diagnostics, a specialised diagnostics company headquartered in Delhi NCR. The acquisition is set to enhance Metropolis’ advanced cancer testing capabilities and expand its presence in Northern and Eastern India.
The acquisition involves a 100 per cent stake in Core Diagnostics, with the deal valued at INR 246.8 crores. The transaction will be financed through a combination of cash (55 per cent) and an equity swap (45 per cent). Core Diagnostics recorded revenues of INR 110 crores in FY 2023-24. The equity issuance is subject to shareholder approval, and the acquisition is expected to conclude within 60 days.
Established in 2012, Core Diagnostics operates in 200 cities in India. The company has a NABL- and CAP-accredited laboratory in Gurugram, a regional reference lab in Hyderabad, and seven satellite labs nationwide. Core Diagnostics offers more than 1,300 high-end tests, primarily focusing on cancer diagnostics, and collaborates with over 6,000 specialty prescribers, including 1,600 cancer specialists.
Ameera Shah, Promoter and Executive Chairperson of Metropolis Healthcare, highlighted the potential of the oncology market in India, which is projected to grow at a CAGR of 17.5 per cent from 2023 to 2028. She stated, “With approximately 1.4 million new cancer cases and nearly a million deaths annually in India, there is a critical need for advanced cancer testing nationwide. By integrating Core’s expertise and infrastructure with Metropolis’ strengths, we aim to reinforce our leadership in advanced cancer testing and establish a Centre of Excellence in Cancer Diagnostics.”
Surendran Chemmenkotil, Chief Executive Officer of Metropolis Healthcare, emphasised the regional benefits of the acquisition. “With the majority of Core’s revenue coming from Northern and Eastern India, this acquisition provides an opportunity to connect with leading hospitals in these regions. It enables us to cross-sell Metropolis’ comprehensive range of tests and services while offering Core’s advanced cancer testing to our existing customers,” he said.
Avadhut Joshi, Chief Business Development Officer at Metropolis Healthcare, noted that the acquisition aligns with Metropolis’ M&A strategy. “The integration of Core into Metropolis is expected to unlock significant synergies, both cost and revenue, which will drive a strong return on investment and further reinforce our leadership in specialised diagnostics,” he stated.
Dinesh Chauhan, Chief Executive Officer of Core Diagnostics, reflected on the company’s journey and the collaboration. “Core Diagnostics began in 2012 as Zoya Brar’s visionary dream. With Metropolis’ reach and expertise, we are ready to take a bigger leap, touching more lives and making a lasting difference in healthcare,” he said.
Alivio Advisors acted as the exclusive financial advisor to Metropolis Healthcare for the transaction. Saraf & Partners provided legal counsel, while PwC conducted financial due diligence.