Skip to main content

Press Release: Pharmeasy to acquire 66.1% stake in Thyrocare for INR 4,546 Crores from Dr A Velumani and affiliates

 



Chennai, 26 June 2021: When it rains it pours. This is exactly what happened when the dynamic 32-year-old Siddharth Shah, Co-founder & CEO of API Holdings, met with 62-year-old, diagnostic services veteran Dr A Velumani, Chairman of Thyrocare in monsoon drenched Lonavala over masala chai at the Thyrocare Chairman’s residence and a landmark deal was struck in record time.

API Holdings Ltd (API), the parent co. of India’s Largest Digital Healthcare Brand, (PharmEasy), founded by Dharmil Sheth, Dhaval Shah, Harsh Parekh, Hardik Dedhia and Siddharth Shah, today announced the signing of definitive documents to acquire 66.1% stake in Thyrocare Technologies Ltd (Thyrocare) from Dr A Velumani and affiliates at a price of INR 1,300 per share aggregating to INR 4,546 crores.

The transaction is subject to regulatory and other applicable customary approvals. Docon Technologies Pvt Ltd, a 100% subsidiary of API, will be the acquirer and shall make an open offer for an additional 26% stake.

Dr A Velumani will be separately acquiring a minority non-controlling stake, of less than 5% in API as part of a series of equity investments by existing and new investors of API.

PharmEasy is India’s #1 online pharmacy and diagnostics brand, RetailIO – India's largest B2B pharma marketplace & seller, and DocOn – a leading consultation and EMR platform. The company has a loyal base of 12mn+ consumers, a network of 6,000+ digital consultation clinics and 90,000+ partner retailers across the country. It currently serves over 1mn patients for their pharmacy & diagnostics needs, conducts 300k+ consultations, and issues over 1mn digital prescriptions on a monthly basis.

Thyrocare is India’s #1 diagnostics solution provider by volume with over 110mn tests performed annually. It is the largest B2B player in the diagnostics space and has a network of 3,330+ collection centres across in 2,000+ towns in India. Thyrocare operates a multi-lab model with 1 mega central processing lab, 2 zonal processing labs and 13 regional processing labs across the country. Thyrocare operates with industry-leading gross margins and its lean cost structures make it one of the most efficiently run operations in the diagnostics space.

The collaboration between PharmEasy and Thyrocare is unique and transformative for the Indian healthcare sector, consumers and the entire healthcare ecosystem. The synergies of both, India’s largest digital health platform and one of the largest, cost-effective diagnostics solution providers (by volume) will reimagine and accelerate the delivery of high-quality diagnostic and OPD services across the full continuum of patient care to nearly 800mn Indians.

PharmEasy’s strong belief and commitment is to provide an integrated digital health platform that enables in democratizing quality healthcare to all Indians, and the company will leverage its deep technology expertise across every single part of the OPD value chain to achieve availability, affordability and accessibility for consumers.

On the addition of Thyrocare into its portfolio, Mr Siddharth Shah, CEO, API Holdings commented “We are delighted to be partnering Thyrocare. We will provide a world-class customer experience in diagnostics, rivalling our pharmacy experience by leveraging technology, and building on top of the massive scale & truly pan-India presence of Thyrocare. It is our aim to deliver all outpatient healthcare products & services to every Indian within 24 hours.”

Dr A. Velumani, Chairman & MD of Thyrocare, expressed “I am excited about this relationship, unique of its kind in Indian Healthcare Industry. The unique reach and strength of Thyrocare in Diagnostics blended with a young and dynamic team of PharmEasy will bring in better healthcare solutions for the common man nationwide.”

India, with one of the fastest-growing digital economies and digitally nascent healthcare sector, is on an exponential growth trajectory addressing the demand to improve quality, accessibility and convenience. From ordering medicines online to teleconsultations and now diagnostic.

services, amidst the pandemic there is a shift not only in consumer preferences but also the business approach and modus operandi by doctors, hospitals, pharmacies and clinics across the country.

About API Holdings: API Holdings is India’s largest and fully integrated digital healthcare company. Over the last few years, API has grown rapidly to build its presence across the entire OPD value chain serving consumers and pharmacy retailers for their needs for pharmaceutical & OTC products, doctor consultation and diagnostics services. It operates leading brands like PharmEasy, RetailIO, DocOn and has a robust presence across the length and breadth of the country. 

About Thyrocare: Thyrocare is India's first fully automated accredited diagnostic laboratory with a focus on providing quality at affordable costs to laboratories and hospitals in India and other countries. It operates with a Centralized Processing Laboratory (CPL) in Mumbai - India for esoteric tests; and a Regional Processing Laboratory in major metro cities of India and other parts of Asia.

API Holding’s advisory was led by JM Financial as the M&A Advisor and Manager to the Open Offer, and Kotak Investment Banking as the M&A Advisor and Advisor to the Open Offer. Iqbal Khan (Senior Partner) and Ambarish (Partner) from Shardul Amarchand Mangaldas & Co. and Ashwath Rau (Senior Partner), Anand Shah (Senior Partner) and Pranav Atit (Partner) from AZB & Partners are acting as the counsels on M&A and Open Offer. Nisha Kaur Uberoi (Senior Partner) from Trilegal is acting as the Lead Counsel on Competition Law to API Holdings. In addition, BCG provided Strategy & Management Consulting advice, EY was the Financial & Tax Due Diligence advisor and Katalyst Advisors was the special advisor on the deal.


Labels:

Comments

Post a Comment

Popular posts from this blog

3 books you should read if you like gambling

By playing, a person's body remains active. He gets new energy from these games for other tasks. But in recent times, information and technology have advanced so much that various types of games are easily accessible through the Internet. Cricket is no exception. But if these games bring us happiness, then we have to answer no. These include playing cards and card games, carom during the holidays, and fun times. Cards originated in China. The cards are used to play various sitting games. In addition to games, cards are also used in magic, prophecy, and bungalows of cards. They are mainly used in gambling. People are so mentally disturbed that they can’t easily escape once they get mad in gambling with https://www.10cric.com/ . The person who knows gambling can automatically get knowledge about betting. Because gambling and betting are two sides of one coin, many houses have been destroyed due to gambling. But some gamblers earn a lot because of gambling and betting! ...
96 comments
Read more

Is studying abroad a boon or a bane?

We have always had a debate when it comes to the topic - "Is studying abroad a boon or a bane?" The ideas differ from person to person. If you ask me, I would surely say that Studying Abroad is certainly a boon. Why is that? India is home to many universities which are known worldwide. Having said that, we must also accept the fact that none of them are in Top 20 at least. While there are many factors that attributes to this, when a person has the means to afford it combined with interest and talent, I do not see the reason as to why one shouldn't be educated abroad? While few study for their status symbol, majority of them predominantly study abroad to enhance their career. There is no doubt in it. Take a look at this brilliant video before we could proceed further. Having said that, the option isn't available to all who wanted to go out of India. The major hindrance for us is clearing the English tests which were being conducted across the glob...
55 comments
Read more

WeeBeeSocial –Providing the Mojo for Digital Marketing Initiatives

A long time ago, the quest was to discover new lands and habitats. And now, as humanity has travelled far and wide, we search for new experiences in the digital world. The digital space is where brands and customers meet, communicate and interact to forge new relationships. The success of these interactions depends on the experiences that brands create for their target audience. This is no easy task and there are only a few that have mastered the art and science of digital marketing. One such entity is  WeBeeSocial , a leading digital marketing agency based in New Delhi. The folks at WeBeeSocial breathe digital and their one and only goal is to help brands create super-rich experiences for theircustomers. A full service creative digital agency,  WeBeeSocial  is where creativity and technology merge to create powerful, immersive experiences in the digital space. WeBeeSocial is the first choice for many leading brands, as it offers a comprehensive range of digital...
23 comments
Read more