The largest Third Party Administrator (TPA) Medi Assist Insurance on Monday signed a definitive agreement to acquire Paramount Health Services & Insurance TPA for Rs 311.18 crore to consolidate its position in the market.
The acquisition is subject to regulatory approvals.
Medi Assist Insurance TPA, which is the wholly-owned subsidiary of Medi Assist Healthcare Services – a company listed on the exchanges, acquired 100 per cent stake in Paramount TPA from Fairfax Asia and Dr Nayan Shah & Family.
“The acquisition represents one of the largest TPA deals in India, with an enterprise value of Rs 311.8 crore, and equity value expected to exceed Rs 400 crore, subject to regulatory (Irdai) approvals,” Medi Assist Healthcare Services said in a press release.
Paramount TPA works with 30 insurers and more than 3,000 group customers and retail policyholders. With the acquisition, Medi Assist TPA’s market share in terms of premiums managed will grow to 36.6 per cent for the group segment from 30 per cent and 23.6 per cent of the overall health insurance industry from 20 per cent.
The acquisition is expected to leverage Medi Assist’s technology, automation (AI/ML), provider networks that position the combined business as a long-term strategic partner to all the life and non-life insurers. In 2023, the company had acquired Raksha TPA and Medvantage TPA.
“In the past, acquisition of Raksha TPA opened new geographies in the north and central part of the country whereas Medvantage TPA gave us access to certain marquee corporate accounts. But with Paramount TPA’s acquisition, it is about consolidation and bringing scale to the whole industry. If you look, 45 per cent of the health premiums are managed in-house. So, with this acquisition, we get significant headroom in convincing insurers to work with the company,” said Satish Gidugu, CEO, Medi Assist.
Nishith Desai Associates acted as legal advisor to Medi Assist and AZB & Partners acted as legal advisor to Fairfax Asia and the Shah family.
First Published: Aug 26 2024 | 8:37 PM IST
