Medi Assist, India’s largest health insurance third-party administrator (TPA), on Monday announced that it has signed a definitive agreement to acquire a 100% stake in Medvantage Insurance TPA.
Medi Assist expects to fund the acquisition of Medvantage, formerly UnitedHealthcare Parekh Insurance TPA, with existing cash from its balance sheet.
The transaction was approved by the board of directors at each of the respective companies and is subject to receipt of regulatory approval and satisfaction of other customary closing conditions, according to a release.
With the combination of the two players in the TPA industry, Medi Assist will now service over Rs 10,000 crore of health insurance premiums as part of its corporate portfolio and also command a market share of close to 30% in this segment.
“This further strengthens Medi Assist’s focus on addressing the need for the digital transformation of the industry and enabling a paperless environment, fast-tracking issuances (enabling rapid product launches) while providing a national footprint and access to insurer-backed healthcare services,” the company said in the release.
Medi Assist CEO Satish Gidugu said the digital-first service focus at the company has been the cornerstone of its growth story. It is committed to creating value for all stakeholders and the acquisition is a great strategic and cultural fit.
The company had in the past acquired Dedicated Healthcare Services (DHS) TPA in 2016 and Medicare TPA in 2018. With Medvantage, Medi Assist adds more clients to its existing portfolio of over 9,000 corporate clients.
Medvantage chairman Nimish R. Parekh said, “Medvantage, one of the first and only specialized corporates focused on TPA, and Medi Assist shares similar values, expertise, capabilities, and vision. This acquisition ensures that Medi Assist is positioned to deliver best-in-class service to Medvantage’s corporate customers and to ensure that we remain laser-focused on a member-first agenda.”