In its second acquisition in barely three months, Metropolis Healthcare Limited has agreed to acquire Agra-based Scientific Pathology, founded by Dr Ashok Kumar Sharma.
Early last December, the pathlabs-network Metropolis had inked a deal to acquire Delhi’s Core Diagnostics for ₹246.8 crore, making it a leading cancer testing company in the country. The consideration for the acquisition will range between INR 55 crore and INR 83 crore, determined at 12.2x of the adjusted EBITDA over a defined assessment period.
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The latest deal would be through its wholly owned subsidiary, Metropolis Clinical Pathology Private Limited, through a Business Transfer Agreement (BTA), Metropolis said. The transaction will be executed through a Securities Subscription Cum Shareholders’ Agreement (SHA), backed by Metropolis Healthcare, it added. On completion, Metropolis Clinical Pathology will transition from a wholly owned subsidiary while continuing to be an integral part of the Metropolis Healthcare Group, it said.
The deal would strengthen its presence in western Uttar Pradesh, Metropolis said, adding that it also accelerated its expansion in the business-to-consumer segment. In line with the agreement, Metropolis Clinical Pathology will acquire and operate all laboratories and collection centers of Scientific Pathology in Agra and neighbouring towns through a slump sale transaction, it told the stock exchanges.
Founded in 1984 by Dr Ashok Kumar Sharma, Scientific Pathology is an established diagnostic brand in Agra, a note from Metropolis said, with three laboratories and eleven collection centres, including two NABL-accredited labs. “With a strong B2C focus, 90 percent of its revenue is generated from walk-in patients. In FY24, the company recorded a turnover of INR 26 crore. It also has a strong digital presence, with over 50,000 app downloads and 35,000 social media followers, reinforcing its position as a digital-first healthcare provider,” the company said.
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Ameera Shah, Promoter and Executive Chairperson, Metropolis Healthcare Limited said in a statement, “Metropolis has successfully executed over 20 strategic acquisitions, integrating leading B2C labs in key cities and transforming them into strong regional hubs for expansion.” Surendran Chemmenkotil, Metropolis Chief Executive Officer, added, “With an estimated market size of ₹2,000 crore, Uttar Pradesh is one of North India’s fastest-growing diagnostic markets. This acquisition marks a significant step in our focused expansion strategy, strengthening our foothold in the region and expanding access to advanced diagnostics in communities where it remains limited. Agra and its neighbouring towns are key healthcare hubs in Western Uttar Pradesh with significant growth potential. With our recently established network of 8 labs and 80+ franchise partners, this move serves as a strong launchpad for our expansion in the state.”
Dr Ashok Kumar Sharma, founder of Scientific Pathology, pointed out that the collaboration would bring Metropolis’ 4,000 tests and expertise in specialty diagnostics closer to Agra and neighbouring towns, enabling earlier and more accurate diagnosis.