Medi Assist Health Stock Rises 9% On Paramount TPA  Acquisition

The stock price of Medi Assist Health rose over 9 per cent in the Tuesday trading session after the firm declared the acquisition of enterprise for the expansion of its market share.
 

Medi Assist Health stock traded with 8.5 per cent gain at Rs 609 in the afternoon session on the Bombay Stock Exchange (BSE). 

Medi Assist Insurance TPA, a wholly owned subsidiary of Medi Assist Healthcare Services signed definitive documents for 100 per cent acquisition of Paramount Health Services and Insurance TPA, owned by Fairfax Asia and the Shah family. 

This acquisition is subject to customary closing conditions and regulatory approvals from the Insurance Regulator (IRDAI).

Paramount TPA worked with 30 Insurers and 3,000 group customers and retail policyholders. With the acquisition of Paramount TPA, Medi Assist TPA market share will grow to 36.6 per cent for the group segment and 23.6 per cent of the health insurance industry, by premiums managed.

This acquisition is expected, amongst others, to leverage Medi Assist's technology, automation (AI/ML), provider networks that position the combined business as a long-term strategic partner to Insurers (General, SAHI and Life).

“Paramount TPA has performed really well over the past years under Nayan Shah's leadership. We are thrilled that in its new home, Medi Assist TPA, it will reach greater heights,” said Gobinath Athappan, Chairman and CEO, Fairfax Asia

“Paramount TPAS 28-years of leadership in the TPA industry stands testament to its success. Our COO, Atman Shah's leadership has been instrumental in the growth of the business. The coming together of 2 leading TPAs will go a long way in delivering on the promise of Insurance for all by 2047,” said Nayan Shah, MD, Paramount TPA.

The acquisition cost Rs 311.8 crore and  is expected to be completed in four to six months by end of FY2025, subject to regulatory approvals and completion of customary closing formalities.