Kolkata: Medi Assist, the country's leading health insurance third party administrator (TPA), is set to acquire a 100% stake in Mumbai-based Medvantage Insurance TPA, one of the oldest TPAs managing high-profile corporate clients such as Microsoft and Wells Fargo.
Three people familiar with the matter said the companies last week signed a definitive agreement on this merger and are now awaiting approval from sector regulator Insurance Regulatory and Development Authority (IRDA) for the same.
Industry insiders said the potential size of the deal is around Rs 35 crore. This cannot be confirmed by any of the merged entities.
However, it has been learnt that Medi Assist will fund the transaction using cash from your balance.
Medi Assist chief executive Satish Gidugu said the acquisition will help the nation's largest TPA increase its company's 27% market share.
"Medvantage has over 100 high-quality corporate accounts that prompted us to explore this acquisition," Gedogo. "We are always exploring inorganic growth and have more plans in the pipeline. Prospects for business growth across all sectors - retail, corporate and government - will drive our future strategy." Medvantage (formerly UnitedHealthcare Parekh Insurance TPA) earned revenue of Rs 30 crore in 2021-22 and managed company premiums of Rs 700 crore.
"As the industry evolves, scaling any business becomes important," Medvantage chairman Nimish R Parekh told. "Given the size of our business, it's hard to scale. That's why we've thought about a strategic fit for our existing shareholders, and Medi Assist is a perfect fit."
The company said the merger will give Medvantage customers access to Medi Assist's cashless hospital network, outpatient services, and a host of offerings like Navigator (for out-of-pocket cost estimation, financing, etc.) which are in the pipeline, the company said.
Medi Assist had earlier acquired the Dedicated Healthcare Services TPA in 2016 and the Medicare TPA in 2018.
Founded in 2000, Medi Assist has built a network of hospitals across India, developed technologies to improve the claims settlement cycle, and implemented mobile apps to simplify access and experience for policyholders. In FY22, it earned revenue of Rs 400 crore and was able to manage a total premium of over Rs 11,000 crore, including premiums of Rs 9,500 crore from the company.
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