Medi Assist, a Third-party administrator acquires Medvantage

Sep 26, 2022, 03:00 pm

Medi Assist, India’s largest third-party administrator (TPA) in the health insurance segment has agreed to acquire Medvantage Insurance TPA Pvt. Ltd.


As a part of the deal, Bengaluru-based Medi Assist will buy 100% stake in Mumbai-based Medvantage, formerly UnitedHealthcare Parekh Insurance TPA, which it plans to fund through cash from its balance sheet.


The company did not disclose the size of the deal, which is subject to regulatory approval from Insurance Regulatory and Development Authority.


The acquisition will help the leading TPA to expand its market share as it acquires the 20-year-old corporate-focused company. Medi Assit reported a total income of ₹393.3 crore in FY22. Medvantage reported a total income of ₹28 crore in FY21, as per its annual report.


Medi Assist, which had filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) in May 2021, was looking to raise over ₹850 crore in its initial public offering.


“Medi Assist will now service over ₹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," the company said.


“The digital-first service focus at Medi Assist has been the cornerstone of our growth story. The acquisition is a great strategic and cultural fit," said CEO of Medi Assist, Satish Gidugu.


The deal helps Medvantage and its customer access to Medi Assist’s pan-India network of hospitals, AI/ML, automation and fraud prevention technologies.