Coming of Age: First ever Acquisition of a listed company by an Indian Unicorn
PHARMEASY TO ACQUIRE 66.1% STAKE IN THYROCARE FOR INR 4,546 CRS FROM dR A. VELUMANI AND AFFILIATES
COMBINED ENTITY WILL HAVE THE ABILITY TO PROVIDE DIAGNOSTICS and pharmacy servicesTO 100MN+ INDIANS WITHIN 24 HOURS
landmark PARTNERSHIP TO BRINGSeamless,tech-enabled healthcare for Consumers, Doctors and Suppliers
PHARMEASY strengthens ITS LEADERSHIP POSITION AS THE LARGEST DIGITAL HEALTHCARE BRand IN INDIA
Chennai,26 June, 2021: When it rains it pours.This is exactly what happened when the dynamic32-year-old Sid dharth Shah, Co-founder & CEO of API Holdings, met with 62-year-old, diagnostic services veteran Dr. A Velum ani, Chairman of Thyrocare in monsoon drenched Lonavala over masala chai at the ThyrocareChairman’s reside nce and a landmark deal was struck in record time.
API Holdings Ltd (API), the parent co. of India’s Largest Digital Healthcare Brand, (PharmEasy), founded by Dhar mil Sheth, Dhaval Shah, Harsh Parekh, Hardik Dedhiaand Siddharth Shah, today announced the signing of defini tive documents to acquire 66.1% stake in Thyrocare Technologies Ltd (Thyrocare) from Dr. A Velumani and aff iliates at a price of INR 1,300 per shareaggregating to INR 4,546 crs.
The transaction is subject to regulatory and other applicable customary approvals. Docon Technologies Pvt Ltd, a 100% subsidiary of API, will be the acquirer and shall make an open offer for an additional 26% stake.
Dr. A Velumani will be separately acquiring a minority non-controlling stake, of less than 5% in API as part of a series of equity investments by existing and new investors of API.
PharmEasy is India’s #1 online pharmacy and diagnostics brand, RetailIO– India’s largest B2B pharma marketpl ace & seller, and DocOn – a leading consultation and EMR platform. The company has a loyal base of 12mn+ con sumers, network of 6,000+ digital consultation clinics and 90,000+ partner retailers across the country. It cur rently serves over 1mn patients for their pharmacy & diagnostics needs, conducts 300k+ consultations, and issues over 1mn digital prescriptions on a monthly basis.
Thyrocare is India’s #1 diagnostics solution provider by volume with over 110mn tests performedannually. It is the largest B2B player in the diagnostics space and has a network of 3,330+ collection centres across in 2,000+ towns in India. Thyrocare operates a multi-lab model with 1 mega central processing lab, 2 zonal processing labs and 13 regional processing labs across the country. Thyrocare operates with industry leading gross margins and its lean cost structures makes it one of the most efficiently run operations in the diagnostics space.
The collaborationbetween PharmEasy and Thyrocare is unique and transformativefor the Indian healthcare sector,consumers and the entire healthcare ecosystem. The synergies of both,India’s largest digital health pla tform and one of the largest, cost-effective diagnostics solution providers (by volume) will reimagineand acc elerate the delivery of high-quality diagnostic and OPD servicesacross the full continuum of patient care to nearly 800mn Indians.
PharmEasy’sstrongbelief and commitment is to provide an integrated digital health platform which enables in democratizing quality healthcare to all Indians, and the company will leverage its deep technology expertise a cross every single part of the OPD value chain to achieve availability, affordability and accessibility for consu mers.
On the addition of Thyrocare into its portfolio, Mr Siddharth Shah, CEO, API Holdings commented “We are deli ghted to be partnering Thyrocare. We will provide world class customer experience in diagnostics, rivalling our pharmacy experience by leveraging technology, and building on top of the massive scale & truly pan-India pres ence of Thyrocare. It is our aim to deliver all outpatient healthcare products & services to every Indian within 24 hours.”
Dr A. Velumani, Chairman & MD of Thyrocare, expressed “I am excited about this relationship, unique of its kind in Indian Healthcare Industry. The unique reach and strength of Thyrocare in Diagnostics blended with young a nd dynamicteam of PharmEasy will bring in better healthcare solutions for common man nationwide.”
India, with one of the fastest growing digital economies and digitally nascent healthcare sector, is on an expone ntial growth trajectory addressing the demand to improve quality, accessibility and convenience. From ordering medicines online to tele consultations and now diagnostic services, amidstthe pandemic there is a shift not only in consumer preferences but also the business approach and modus operandi by doctors, hospitals, pharmacies and clinics across the country.
About API Holdings:API Holdings is India’s largest and fully integrated digital healthcare company. Over the last few yea rs, API has grown rapidly to build its presence across the entire OPD value chain serving consumers and pharmacy retail ers for their needs for pharmaceutical& OTC products, doctor consultation and diagnostics services. It operates leading brands like PharmEasy, RetailIO, DocOn and has a robust presence across the length and breadth of the country.
About Thyrocare: Thyrocare is India’s first fully automated accredited diagnostic laboratory with a focus on providing quality at affordable costs to laboratories and hospitals in India and other countries. It operates with a Centralized Pr ocessing Laboratory (CPL) in Mumbai – India for esoteric tests; and Regional Processing Laboratory in major metro cities of India and other parts of Asia.
API Holding’s advisory was led by JM Financial as the M&A Advisor and Manager to the Open Offer, and Kotak Invest ment Banking as the M&A Advisor and Advisor to the Open Offer. Iqbal Khan (Senior Partner) and Ambarish (Partner) from ShardulAmarchandMangaldas& Co. and Ashwath Rau (Senior Partner),Anand Shah (Senior Partner)and Pranav Atit (Partner) from AZB & Partners are acting as the counsels on M&A and Open Offer. Nisha Kaur Uberoi (Senior Part ner) from Trilegal is acting as the Lead Counsel on Competition Law to API Holdings.In addition, BCG provided Strategy & Management Consulting advice, EY was the Financial & Tax Due Diligence advisor and Katalyst Advisors wasspecial advisor on the deal.
