Manipal Hospitals acquires majority stake in Medica Synergie for Rs 1,400 crore

Manipal Hospitals announced on Monday its acquisition of an 87 per cent stake in Medica Synergie, marking a strategic move to expand its presence.

While the financial terms of the deal were not disclosed by Manipal Hospitals or Medica Synergie, three sources familiar with the matter revealed to Reuters that the transaction is valued at Rs 1,400 crore, speaking on the condition of anonymity.

The acquisition of Medica Synergie, which operates hospitals in Kolkata, Siliguri, and Ranchi, is expected to significantly enhance Manipal Hospitals' operational scale. The deal will enable Manipal Hospitals to cater to approximately 7 million patients annually and extend its reach across 37 hospitals in 14 states. The move will also boost Manipal Hospitals' hospital bed capacity from over 9,500 to more than 10,500.

Last year, Manipal Hospitals served nearly five million patients through its network of 29 hospitals in 16 cities. The acquisition of Medica Synergie follows Manipal Hospitals' previous acquisition of AMRI Hospitals from the Emami Group in September last year.

India's healthcare market is witnessing robust growth, with projections indicating that it could reach $458 billion by 2030, according to global consulting firms Boston Consulting Group and B Capital. The increasing demand for healthcare services in India's smaller cities and towns, driven by economic growth, has prompted leading private hospital chains to expand their presence through strategic acquisitions of well-equipped facilities.

Singapore-based investment firm Temasek holds a 51 per cent stake in Manipal Health and an 87 per cent interest in Medica Synergie, further underlining the significance of the deal in the healthcare sector.

(With Reuters inputs)