BENGALURU: Healthcare major Apollo Hospitals has acquired Nova Speciality Hospitals for Rs.140 crore.
Calling it ‘strategically suited’ to its expansion plans, Sangita Reddy, Joint Managing Director of Apollo Hospital Enterprises said that short stay surgeries have been growing at a rapid pace and that the acquisition will help Apollo Health and Lifestyle Ltd (AHLL) make entry into new markets like Mumbai, Jaipur and Kanpur among other cities.
She said that nearly 60% of medical cases globally were day surgeries; patient is discharged within a day. Nova, which started in 2009, has 11 short stay surgery centres spread over 8 cities.
“The combined network will clock a turnover between Rs.115 crore and Rs.125 crore for the year ending March 15 and with the group synergies that Apollo brings to the table, the management is confident of achieving break even in the next 18 to 24 months.
“The deal size will be in the range of Rs.135-145 crore subject to final closure,” Suresh Soni, Chairman, Nova Medical Centres, said.
On the government’s decision to allow 100% FDI in medical devices coming into effect from January 21, 2015, Neeraj Garg, CEO of AHLL told Express that local producing of medical devices would drive down costs which could be later transferred to the customer. However, he said that it would be only with conscious reduction in taxes and duties over a period of time will allow the benefit to be transferred.