Health Financing/Insurance

Metropolis Healthcare announces investment of up to USD 85 million by Warburg Pincus

eHealth BureauMetropolis Healthcare Limited (Metropolis), India’s only multinational chain of diagnostic laboratories, announced that Warburg Pincus, a leading global private equity firm, is making an investment of up to USD 85 million in the company. As part of this deal, Indian private equity firm ICICI Ventures has completely divested its holding in the company, which it had acquired in 2006. The deal involves a primary and secondary component and also includes additional capital that will be available to Metropolis to pursue acquisitions.In a fragmented market for medical diagnostic services in India, Metropolis has established itself as a national player of scale. Through a network of 45 state-of-the-art laboratories and over 350 collection centers across India, Metropolis processes over 12 million tests a year, serving over 10,000 laboratories, hospitals, and nursing homes and 50,000 doctors. The company has expanded through a combination of organic growth and partnerships. In addition to building a strong business in India, the company has successfully established its brand through 10 laboratories in Sri Lanka, South Africa and UAE and will continue to seek apropriate acquisition opportunities while expanding its delivery network and deepening its presence in current locations.Warburg Pincus has been a leading private equity investor since its foundation in 1966. The firm currently has more than USD 30 billion in assets under management. Its active portfolio of more than 110 companies is highly diversified by stage, sector and geography. Warburg Pincus is a growth investor and an experienced partner to management teams seeking to build durable companies with sustainable value. The Firm has raised 13 private equity funds which have invested more than USD 35 billion in over 600 companies in more than 30 countries.Ameera Patel, utive Director & CEO, Metropolis said, “Our association with ICICI Ventures over the last few years has been rewarding and we are delighted to welcome Warburg Pincus as our future partner. We are confident that with their support we will achieve our vision of consolidating Metropolis as the foremost clinical diagnostics service provider across the emerging markets of South Asia, Africa and Middle East.”Adding to Patel’s comments, Dalip Pathak, member of the utive Management Group at Warburg Pincus said, “Healthcare is an important focus area for Warburg Pincus. We are delighted through this investment to expand our presence in the sector in India, particularly by partnering with Metropolis, which is uniquely positioned in healthcare services.”O3 Capital acted as the sole financial advisor to Metropolis for this transaction. Amarchand & Mangaldas & Suresh A Shroff acted as legal advisors to Warburg Pincus, Desai Diwanji acted as legal advisors to Metropolis and Ernst &Young conducted financial and accounting diligence for the transaction.

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