Metropolis Healthcare Limited on Monday announced the acquisition of Delhi NCR-based Core Diagnostics for Rs 246.8 crore. The acquisition aims to enhance Metropolis’ cancer testing capabilities and expand its presence in Northern and Eastern India, focusing on the specialised diagnostics segment.
The transaction includes 55% financing in cash and 45% through an equity swap. Subject to shareholder approval, the deal is expected to conclude within 60 days. Core Diagnostics, established in 2012, operates across 200 cities in India and offers over 1,300 tests, primarily in oncology. The company has a NABL- and CAP-accredited laboratory in Gurugram, a regional reference lab in Hyderabad, and seven satellite labs. It reported revenue of Rs 110 crores in FY 2023-24 and has maintained a revenue CAGR of around 22% over the past three years.
Ameera Shah, Promoter and Executive Chairperson of Metropolis Healthcare, highlighted the growing demand for cancer diagnostics in India, which records approximately 1.4 million new cases annually. “The need for advanced cancer testing is evident. By combining Core’s capabilities with Metropolis’ expertise, we aim to enhance access to critical diagnostics and establish a Centre of Excellence in Cancer Diagnostics,” Shah said.
Metropolis CEO Surendran Chemmenkotil explained that Core’s operations in Northern and Eastern India provide opportunities to collaborate with hospitals in these regions. “This acquisition allows us to offer Core’s cancer testing services to our existing clients while integrating our broader range of diagnostics,” Chemmenkotil said.
This acquisition is part of Metropolis’ broader strategy to address growing healthcare needs in India and enhance its offerings in specialised diagnostics. Avadhut Joshi, Chief Business Development Officer, noted that the move aligns with Metropolis’ approach to scaling acquired platforms through its distribution network and management expertise. “The integration will provide cost and revenue synergies, helping us expand our specialised diagnostics portfolio,” he said.
Advisors for the transaction included Alivio Advisors, Saraf & Partners, and PwC. “Joining Metropolis will allow us to broaden the reach of our cancer diagnostics services and make a greater impact in healthcare,” Dinesh Chauhan, CEO of Core Diagnostics said.