Mumbai: API Holdings Ltd (API), the parent co. of India’s Largest Digital Healthcare Brand, (PharmEasy), has signed definitive agreements to acquire a 66.1% stake in Thyrocare Technologies Ltd (Thyrocare) from Dr. A Velumani and affiliates at a price of Rs 1,300 per share aggregating to Rs 4,546 crores, strengthening its position as the largest digital healthcare brand in India.
Docon Technologies Pvt Ltd, a 100% subsidiary of API, will be the acquirer and shall make an open offer for an additional 26% stake, said a company statement, making it the first-ever acquisition of a listed company by an Indian unicorn.
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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.
Commenting on the deal, Mr. Siddharth Shah, CEO, API Holdings said, “We are delighted to be partnering Thyrocare. We will provide a world-class customer experience in diagnostics, rivalling our pharmacy experience by leveraging technology, and building on top of the massive scale & truly pan-India presence of Thyrocare. It is our aim to deliver all outpatient healthcare products & services to every Indian within 24 hours.”
PharmEasy, founded by Dharmil Sheth, Dhaval Shah, Harsh Parekh, Hardik Dedhia and Siddharth Shah has become India’s #1 online pharmacy and diagnostics brand with a loyal base of 12mn+ consumers, a network of 6,000+ digital consultation clinics and 90,000+ partner retailers across the country.
Thyrocare is India’s leading diagnostics solution provider by volume with over 110mn tests performed annually. It is the largest B2B player in the diagnostics space and has a network of 3,330+ collection centers across 2,000+ towns in India.
Dr A. Velumani, Chairman & MD of Thyrocare, said, “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 and dynamic team of PharmEasy will bring in better healthcare solutions for common man nationwide.”
The synergies of India’s largest digital health platform and one of the largest, cost-effective diagnostics solution providers (by volume) will reimagine and accelerate the delivery of high-quality diagnostic and OPD services across a full continuum of patient care to nearly 800 million Indians.
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India, with one of the fastest-growing digital economies and digitally nascent healthcare sector is on an exponential growth trajectory addressing the demand to improve quality, accessibility, and convenience. From ordering medicines online to tele consultations and now diagnostic services, amidst the 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.
The deal was struck when 32-year-old Siddharth Shah, Co-founder & CEO of API Holdings met with 62-year-old, diagnostic services veteran Dr. A Velumani, Chairman of Thyrocare in monsoon drenched Lonavala over masala chai at the Thyrocare Chairman’s residence.