New Delhi, Nov. 6 -- Hyderabad Institute of Oncology Pvt Ltd, the operator of oncology hospital network Omega Hospitals, has acquired a Bengaluru-based oncology centre that provides cancer treatment through immunotherapy.
The Morgan Stanley Private Equity-backed company has signed a deal to buy Cytecare Hospitals Pvt Ltd, which operates eponymous oncology centres, in a deal involving primary and secondary transactions. Omega will acquire secondary shares from Cytecare's shareholders and infuse primary capital to fuel growth, as per a statement. Terms of the transaction were not disclosed.
Spark Capital acted as the sole financial advisor for the transaction.
"It has been a great pleasure to hand over the reins to Omega for the next phase of its growth journey," said Suresh Ramu, co-founder and CEO, Cytecare Hospitals.
Founded in 2016, Cytecare is a 155-bed, fully integrated cancer care center which provides healthcare services across its Oncology Center of Excellence and other specialties. It offers immunotherapies, such as CAR-T Therapy and NK-Cell Therapy, to treat cancer patients.
Cytecare derives about 85% of its revenue from surgical and oncological services. The company claims to have treated more than 13,000 inpatients, over 1,60,000 outpatients, administered 50,000-plus radiation therapy fractions, and conducted around 6,500 PET CT scans. It counts among its investors names such as Goldman Sachs and GHO Capital Partners.
As of the financial year ended March 2024, Cytecare recorded nearly 19% growth in standalone revenue to Rs 91.6 crore, while it pared its net loss to Rs 15 crore from Rs 38 crore a year ago, according to VCCEdge.
The deal comes more than a year after Morgan Stanley invested Rs 500 crore in the Hyderabad-headquartered Omega Hospitals as growth capital to expand its presence across multiple Indian states, including the twin states of Telangana and Andhra Pradesh, as well as neighbouring states such as Karnataka, Maharashtra, Tamil Nadu, Madhya Pradesh and West Bengal.
Omega Hospitals, founded in 2010 by surgical oncologist Mohana Vamsy, has transformed into a multi-specialty hospital offering treatments in cancer care, cardiology, gynaecology and others. In Hyderabad, it has three hospitals with 930 beds, including a 400-bedded Centre of Excellence in Gachibowli. Besides Hyderabad, it has expanded its footprint to Guntur, Kurnool, Vishakhapatnam, Karimnagar, Bhimavaram, Dehradun and Jabalpur.
Since investment from Morgan Stanley's PE arm, Omega has further expanded its presence to Tirupati, Surat, Vijayawada and Yamuna Nagar. Its revenue from operations in FY 2023-24 rose 45% to Rs 380 crore, while net profit increased to Rs 6 crore from 4.1 crore a year ago, according to VCCEdge data.
Published by HT Digital Content Services with permission from VC Circle.