Metropolis Healthcare Acquires Core Diagnostics for ₹246.8 Crore
Mumbai-based Metropolis Healthcare, India’s second-largest pathology chain, has announced its acquisition of Delhi NCR-based Core Diagnostics, a leading cancer diagnostics provider, in a deal worth ₹246.8 crore. The acquisition involves 55% cash financing and 45% equity swap, further strengthening Metropolis‘ position in oncology testing.
Core Diagnostics, which reported ₹110 crore in revenue for FY23-24, is projected to generate ₹120–122 crore by the end of FY24-25. Ameera Shah, Executive Chairperson of Metropolis, stated that the acquisition values Core at approximately 1.6 times its anticipated FY25 revenue.
The transaction, subject to shareholder approval, is expected to close within 60 days. Following the announcement, Metropolis’ shares rose by 2.4% on the BSE.
Strategic Benefits of the Acquisition
This acquisition significantly enhances Metropolis’ portfolio of super-specialty tests, increasing their share of revenue from 37% to 41%. Oncology testing revenue will see a major boost from 4% to 10%, complementing Metropolis’ existing offerings.
Core Diagnostics, backed by private equity firms Artiman Ventures and Eight Roads Ventures, specializes in advanced cancer diagnostics with over 1,300 high-end tests, including 350–400 cancer-specific tests. Its operations span 200 cities across India, with connections to 1,600 oncologists and over 6,000 specialty prescribers.
Ameera Shah highlighted that Metropolis plans to leverage Core’s robust presence in North and East India, achieving synergies in revenue and cost while fast-tracking its entry into advanced oncology testing.
Future Roadmap
For the first year post-acquisition, Core will operate under its brand. By the second year, Core will transition to become Metropolis’ dedicated oncology testing brand. Shah emphasized that this strategic move saves 4–5 years of organic growth efforts and strengthens Metropolis’ market share in underserved regions.
Metropolis will also gain access to Core’s extensive network of hospitals and laboratories, along with its team of 500 employees, including CEO Dinesh Chauhan, who will continue to lead Core’s operations.
Cancer Testing Demand on the Rise
India faces a critical need for advanced cancer testing, with 1.4 million new cases annually. The market for cancer diagnostics is expected to grow at a CAGR of 17.5% from 2023 to 2028. This acquisition positions Metropolis as a leader in addressing this growing demand.
Dinesh Chauhan expressed excitement about the collaboration, calling it a pivotal moment to expand Core’s impact under Metropolis’ umbrella.
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