Medi Assist Insurance TPA, on Monday, said that it has signed definitive agreements to acquire a 100 per cent stake in Paramount Health Services & Insurance TPA.
The acquisition, valued at an Enterprise Value of Rs 311.8 crore, is one of the largest deals in the Indian TPA industry, with the Equity Value expected to exceed Rs 400 crore, subject to regulatory approvals from the Insurance Regulatory and Development Authority of India (IRDAI).
The acquisition aims to support Medi Assist TPA's market presence. Post-acquisition, Medi Assist TPA's market share by premiums managed will increase by approximately 6 per cent in the Group insurance segment and by around 4 per cent in the overall health insurance industry (Group + Retail), based on March 2024 figures.
Paramount TPA currently collaborates with 30 insurers and serves over 3,000 group customers and retail policyholders. With the acquisition, Medi Assist TPA's market share in the group segment will rise to 36.6 per cent, and its overall share in the health insurance industry will increase to 23.6 per cent, by premiums managed.
This strategic acquisition is expected to enhance Medi Assist's capabilities by leveraging advanced technology, including AI and machine learning, and its extensive provider networks. The combined entity aims to position itself as a long-term strategic partner to insurers across General, Standalone Health Insurance (SAHI), and Life segments.
Gobinath Athappan, Chairman & CEO of Fairfax Asia, expressed confidence in the acquisition, stating, "Paramount TPA has performed exceptionally well under Dr Nayan Shah's leadership. We are thrilled that in its new home with Medi Assist TPA, it will reach greater heights."
Dr Nayan Shah, Managing Director of Paramount TPA, added, "Paramount TPA's 28 years of leadership in the TPA industry stand as a testament to its success. The leadership of our COO, Atman Shah, has been instrumental in driving our growth. The merger of two leading TPAs will significantly contribute to delivering on the promise of insurance for all by 2047."
Satish Gidugu, CEO of Medi Assist, remarked, "This strategic move strengthens our market leadership and aligns with our long-term vision of making quality healthcare accessible and efficient. I warmly welcome the Paramount team to the Medi Assist family as we work together towards achieving greater milestones."
