Metropolis to buy Hitech, expand footprint in South

Diagnostic chain Metropolis Healthcare on Sunday said it will acquire Dr Ganesan's Hitech Diagnostic Centre Pvt Ltd in a cash and stock combination deal, to strengthen its leadership position in southern India.

The company's board has approved the acquisition partly by way of cash consideration of Rs 511 crore and partly by issuance of up to 4,95,000 equity shares of a face value of Rs 2 each on a preferential basis, to the promoter group of Hitech, Metropolis Healthcare said in a regulatory filing.

"The cash consideration will be funded through internal accruals and debt of up to Rs 300 crore," it added.

S P Ganesan, its promoter and founder, will be part of the leadership team for the next few years to enable a smooth transition and integration with Metropolis, the filing said.

By the acquisition, Metropolis will get an access to 31 laboratories, including three NABL- and ICMRaccredited laboratories and 68 collection centres of Hitech.

Metropolis Healthcare Managing Director Ameera Shah said, "In line with the strategy to grow, gain market share and increase B2C revenues in focus cities, we are acquiring Hitech Diagnostic Centre which will strengthen our leadership position in the South India market."