Constellation Alpha Capital Corp is likely to acquire Peepul Capital-owned Medall Healthcare Private Limited for $ 212 million. It is one of the largest investments in Indian diagnostic space.
Constellation was advised by Edelweiss Financial Services while Medall was advised by Moelis & Co.
Peepul Capital, which had invested around Rs 300 crore in the company holds around 80 per cent stake. Dubai based Abraaj Capital was one of the contenders in race to acquire Medall Health.
Constellation Health Holdings, a wholly owned Singapore subsidiary of Constellation will acquire 93 per cent of the outstanding shares of Medall for approximately $166 million in cash.
At the closing, Medall will become a subsidiary of Constellation.
“We are pleased to begin our consolidation strategy with a market leader like Medall. We look forward to growing the company through serial acquisitions and organic levers,” said Rajiv Sarman Shukla, chairman and Chief Executive, Constellation.
Previously known as Precision Diagnostics, the Chennai-based chain of pathology labs was acquired in 2009 by Raju Venkataraman, who re-branded it as Medall Healthcare and provided over 25 million diagnostic tests to over 9 million customers in its most recent fiscal year.