Medi Assist Healthcare Services, which offers third-party administration services to insurance firms, on Monday said it will fully acquire Paramount Health Services & Insurance TPA in a deal valued at over Rs 400 crore.
Medi Assist Insurance TPA, a wholly-owned subsidiary of Medi Assist Healthcare Services, has inked a pact with Fairfax Asia and Nayan Shah & family to acquire Mumbai-based Paramount Health Services & Insurance TPA.
Paramount is a prominent player in the TPA space, owned by Fairfax Asia and the Shah family.
With the acquisition of Paramount TPA, Medi Assist TPA's market share will grow to 36.6 per cent for the group segment and 23.6 per cent of the health insurance industry, by premiums managed, the company said.
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The deal was concluded at an enterprise value of about Rs 311 crore, and around Rs 110 crore of cash equivalents will be paid as part of the acquisition, it added.
The acquisition represents one of the largest TPA deals in India, subject to regulatory (Irdai) approvals, it added.
Paramount TPA works with 30 insurers, and over 3,000 group customers and retail policyholders.
"This strategic move strengthens our market leadership and aligns with our long-term vision of making quality healthcare accessible and efficient. I welcome the Paramount team to the Medi Assist family and to achieving greater milestones," Medi Assist CEO Satish Gidugu said.
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Paramount TPA MD Nayan Shah said the coming together of two leading TPAs will go a long way in delivering on the promise of insurance for all by 2047.
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