Mumbai: After six months of talks to acquire an infertility treatment platform, Nova IVI Fertility; Asia Healthcare Holdings (AHH) backed by TPG Growth has finally signed definitive agreements with the deal said to be worth over Rs 692 crore ($100 million).
According to a recent report by ET, AHH will buy stakes from existing private equity investors and promoters.
The acquisition will reportedly result in establishing the largest mother and child-focused healthcare platform in India. The platform would aim to power multiple single speciality healthcare delivery companies via a single management team.
Medical Dialogues had earlier reported that Asia Healthcare Holdings (AHH), an operating and investment platform founded by TPG Growth, the global middle market and growth equity platform of TPG, announced that it was all set to acquire Nova IVI Fertility, one of the largest operators of fertility clinics in India, in a deal said to be worth of $100 Million.
Founded in the year 2011, Nova fertility operates a network of IVF centres with 20 centres across more than a dozen cities in the country. It performs more than 10,000 IVF treatments annually with 60 IVF and gynaecology specialists and 50 embryologists, while AHH, presently operates a chain of 12 women and children hospitals across the country under the Motherhood brand.
Apart from the Motherhood brand, AHH also operates a network of 13 oncology hospitals under the name of American Oncology Institute, and Ampath, a network of pathology diagnostics labs.
Leveraging its experience of growing the Motherhood network, AHH team and leadership will work adjacent to the Nova Fertility team to build operating synergies and scale the network in the region.
According to a report in Business Standard, Naresh Rao, CEO of Nova Fertility said in a statement, “TPG and AHH are the leaders when it comes to creating innovative healthcare models and investments in India. We are excited to see Nova Fertility join the AHH platform, which has proven expertise in growing and scaling healthcare delivery systems. This will unlock Nova’s growth potential and strengthen our position in India’s fast-growing fertility segment.”
“Vishal (AHH Executive Chairman Vishal Bali) and the TPG team know how to grow great businesses, and we look forward to partnering with them,” he added.
The AHH platform, funded by TPG Growth, helps power multiple single speciality healthcare delivery companies through a single management team. TPG Growth has been one of the most active investors in healthcare in India and South Asia in the past five years.
Expressing his opinion about the acquisition, Ankur Thadani, operating partner at TPG stated, “Nova is well positioned to be a leader in IVF & fertility care with its best-in-class clinical capabilities and brand pull among clinician and patient community. This acquisition strengthens our thesis of establishing AHH as a leader in building a scaled, transformative and integrated single speciality healthcare platform.”
It has been reported that the present approach creates a formidable position for AHH with a rise in women healthcare consumers in India. The AHH Executive Chairman Vishal Bali mentioned, “Nova will be a great addition to the AHH platform and our vision of building the region’s most valuable Women & Children’s healthcare delivery network. We believe women healthcare consumers need one destination of care and that gets well served through our service offerings of Motherhood Hospitals & Nova Fertility.”
“Nova offers a unique set of capabilities that fit well alongside our existing portfolio and we look forward to bringing our experience to bear as we continue to grow Nova’s footprints and enhance their operations,” he added.
AHH will buy stakes from existing private equity investors and promoters including founder Mahesh Reddy. Goldman Sachs Group Inc. and New Enterprise Associates together hold about 51% in Nova IVI, New York-based fund GTI Group has about 15% and the promoters, the remainder, suggests a report by ET.