Apollo Hospitals group subsidiary, Apollo Health and Lifestyle Ltd Tuesday announced acquiring Nova Specialty Hospitals for Rs.145 crore to take medical care to home from tertiary care settings.
"The deal size will be in the range of Rs.135-145 crore subject to final closure. The Nova Specialty Hospitals chain, located in eight cities across the country, will add to our network of 45 modular operation theatres and 350 patient beds," Apollo Hospital Enterprises Ltd joint managing director Sangita Reddy told reporters here.
Nova has presence in Bengaluru, Chennai, Hyderabad, Jaipur, Kanpur, Mumbai, New Delhi and Pune across the country and at Muscat in Oman.
"Nova's chain of hospitals will serve as new centres under our brand and benefit from our legacy of expertise, clinical excellence and empathy," Reddy said.
Observing that the acquisition would fit into the subsidiary's growth strategy to provide a larger footprint, as it had presence only in the secondary care segment through the Day Surgery & Cradel formats, Reddy said Nova chain would enable the Apollo arm to grow its business significantly due to immense potential for providing quality healthcare delivery closer to home.
"We believe the format has huge potential for growth in the next few years owing to synergy between Nova chain and our tertiary care hospitals and our brand equity," Reddy said.
The buy out will also facilitate Apollo's entry into new markets such as Jaipur, Kanpur and Mumbai for providing medical excellence and compassionate care to patients.
Nova's chain of 11 short stay surgery centres, equipped with advanced medical facilities, is designed to provide convenient facilities for planned surgeries to patients.
"We will strengthen our service offerings in Nova centres by introducing our preventive health checks and setting up sugar clinics," Reddy added.
The subsidiary's chief executive Neeraj Garg said it is targetting a Rs.500 crore turnover over the next five years.
"The combined network will post a turnover of Rs.115-125 crore for this fiscal (2014-15) and hopes to achieve break even in the next 18-24 months," he said.
Nova medical centres chairman Suresh Soni said as early movers in short stay surgeries, the hospital chain had been focusing on providing people affordable and accessible healthcare.
