New Delhi, March 3 -- In its second acquisition in just three months, Metropolis Healthcare Ltd, India's second-largest pathology chain, will acquire Agra-based diagnostic service provider Scientific Pathology, it said on Monday.
The transaction will be carried out through the company's wholly-owned subsidiary Metropolis Clinical Pathology Pvt Ltd. The transaction is expected to be completed within 45 days, pending regulatory approvals and fulfillment of conditions outlined in the business transfer agreement (BTA) and securities subscription-cum-shareholders agreement (SHA). Upon completion, Metropolis Clinical Pathology will transition from a wholly-owned subsidiary while continuing to be an integral part of the Metropolis Healthcare Group, the company said.
Structured as a slump sale, the deal includes the acquisition of Scientific Pathology's laboratories and collection centres, ensuring operational continuity. The purchase price is expected to be between Rs 55 crore and Rs 83 crore, subject to adjustments, Metropolis said in a stock exchange filing. As part of the agreement, Metropolis Clinical Pathology has signed a securities subscription-cum-shareholders agreement with Scientific Pathology founder Ashok Kumar Sharma.
The acquisition is set to strengthen Metropolis' diagnostic network in Uttar Pradesh, particularly in Agra and surrounding areas, by driving test volumes and improving regional penetration. "With our recently established network of eight labs and 80-plus franchise partners, this move serves as a strong launchpad for our expansion in the state. Establishing Scientific Pathology in Agra as our regional reference lab will enhance capabilities, scale access through a structured franchise model, and introduce our specialized test portfolio," Surendran Chemmenkotil, chief executive officer, Metropolis Healthcare, said.
The deal comes just three months after Metropolis Healthcare agreed to acquire oncology-focused diagnostic services provider Core Diagnostics to expand its advanced cancer testing portfolio and strengthen its presence in northern and eastern India. At the time, Metropolis chairperson Ameera Shah had told VCCircle that the company was "actively exploring" acquisitions in the sector. "We are considering smaller acquisitions in the northern and eastern regions of the country. In markets where our consumer brand presence is limited, acquiring a local leader could provide a strong platform for entry and growth," she said.
Founded in 1984, Scientific Pathology operates three laboratories and 11 collection centers in Agra and nearby towns. The company has a strong business-to-consumer (B2C) focus, with 90% of its revenue coming from walk-in patients. In FY24, it recorded a turnover of Rs 26 crore. In FY23, however, its net revenue had declined to Rs 23 crore from Rs 26 crore in FY22.
Established in 1981, Metropolis is the second-largest diagnostics chain in India. It has a presence in over 700 towns and cities across 22 states and three Union Territories. It offers a range of over 4,000 tests, including advanced tests for the diagnosis of cancer, neurological disorders, infectious diseases, and various genetic abnormalities.
Published by HT Digital Content Services with permission from VC Circle.