Bajaj Finserv Health Acquires Vidal Health Care
Bajaj Finserv Health, a wholly owned subsidiary of Bajaj Finserv, on Tuesday, said that it has acquired a 100 per cent stake in Vidal Healthcare Services (VHC).
The acquisition is made at an enterprise Value of Rs 325 crore and is expected to close in the fourth quarter of FY 2023-24, as per the company's statement.
Upon completion of the acquisition, VHC and its subsidiaries shall become wholly owned subsidiaries of Bajaj Finserv Health.
The acquisition of VHC significantly expands Bajaj Finserv’s capabilities in the healthcare space, empowering it to service consumer needs for hospitalization, one of the largest healthcare spending categories.
The acquisition now enables Bajaj Finserv Health to offer OPD, wellness, as well as hospitalisation benefits to customers, thereby providing a continuum of care. The acquisition also helps Bajaj Finserv Health play a pivotal role in various healthcare initiatives of the government and the insurance regulator.
Devang Mody, Chief Executive Officer and Whole-time Director, Bajaj Finserv Health, said: “Vidal Health brings deep domain knowledge and vast experience in healthcare administration in India. This, combined with Bajaj Finserv Health’s superior digital experience and data management prowess, enables the company to be uniquely placed to lead the healthcare transformation that is underway in India. The acquisition also underlines our relentless commitment to provide access to best-in-class medical care, thereby improving health outcomes.”
To ensure continuity of service for existing clients of VHC TPA, the present core management team will also continue.
Girish Rao, Chairman and Managing Director of Vidal Health said: “As health-tech changes the dynamics of healthcare administration in India, we are excited to be part of Bajaj Finserv as it enables us to bolster our technology capabilities and fuel quality-focused expansion. This transaction underscores our commitment to staying at the forefront of the industry in providing innovative and flexible solutions to our customers. We look forward to this new chapter and the opportunities this transaction brings for both organisations and their people.”
JM Financial acted as the exclusive financial advisor for Bajaj Finserv Health, while Ernst & Young conducted Financial and Tax Due Diligence and Chitale Legal were the legal advisor.
PwC Corporate Finance acted as the exclusive financial advisor to Vidal Health, while Ernst & Young provided Tax advisory and Shardul Amarchand Mangaldas were the legal advisors.
