Medi Assist to Acquire Paramount Health for INR 312 Cr

Medi Assist's acquisition will notably expand its market presence, increasing its share to 36.6% in the group segment and 23.6% across the health insurance sector by premiums managed.

Medi Assist Healthcare Services has acquired Paramount Health Services & Insurance TPA at an enterprise value of INR 311.8 Cr.

This strategic acquisition, facilitated through Medi Assist Insurance TPA—a wholly-owned subsidiary of Medi Assist Healthcare Services—signals a significant consolidation in the third-party administration (TPA) sector.

The deal, set in motion through an agreement with Fairfax Asia and the Shah family, who jointly own the Mumbai-based Paramount Health, marks one of India's largest transactions in the TPA industry.

Medi Assist's acquisition will notably expand its market presence, increasing its share to 36.6% in the group segment and 23.6% across the health insurance sector by premiums managed.

Paramount TPA is a key player in the industry, collaborating with 30 insurers and serving over 3,000 group customers and retail policyholders.

The completion of this deal is contingent upon approval from the Insurance Regulatory and Development Authority of India (IRDAI).

"This strategic move strengthens our market leadership and aligns with our long-term vision of making quality healthcare accessible and efficient. I welcome the Paramount team to the Medi Assist family and to achieving greater milestones," Medi Assist CEO Satish Gidugu said.

In January this year, Medi Assist stepped into the trading floor with the launch of its Initial Public Offering.

On the first day of subscription, the retail investors' portion of the Medi Assist Healthcare Services IPO saw a subscription rate of 89%, while 45% of the Non-Institutional Investors (NII) portion was subscribed.

The Qualified Institutional Buyers (QIB) portion is yet to be booked. The price band for the IPO has been fixed in the range of INR 397 to INR 418 per equity share, with a face value of INR 5.

Medi Assist Healthcare offers services to insurance companies through its subsidiaries, Medvantage TPA, Raksha TPA, and Medi Assist TPA.

These subsidiaries handle health insurance claims on behalf of insurance companies and provide services such as managing networks, administering policies, and customer support.

The company offers additional healthcare services such as hospitalization, call center support, customer relations, contract management, billing, and claims processing.

Medi Assist has established a widespread healthcare provider network in India, comprising 18,754 hospitals across 1,069 cities and towns, 31 states (including union territories), and 141 countries worldwide, as of September 30, 2023. In the last fiscal year, the company posted revenue of INR 570.29 million.