In a strategic move to enhance its footprint in Northern India, Metropolis Histoxpert, a wholly owned subsidiary of Metropolis Healthcare, has entered into a Business Transfer Agreement (BTA) to acquire the operating businesses of three interconnected diagnostic service providers under the well-known ‘Dr. Ahujas’ Pathology & Imaging Centre’ brand in Dehradun, Uttarakhand. The total cash consideration for the transaction amounts to ₹35.01 crore, and the deal is expected to be completed within 45 days from the date of the BTA.

About the Target Entities

The transaction involves the acquisition of the business operations of:

• Dr. Ahujas’ Pathology & Imaging Centre (DAPIC) – a partnership firm,

• Dr. Alok Ahuja’s sole proprietorship firm, and

• Dr. Alka Ahuja’s sole proprietorship firm.

All three businesses operate collectively under the brand ‘Dr. Ahujas’ Pathology & Imaging Centre’, a leading provider of pathology and radiology diagnostic services in Dehradun. The brand has built a strong reputation since its inception in 1990, offering diagnostic excellence with NABL-accredited laboratories and NABH-accredited radiology centres.

Turnover and Financial Snapshot

The combined consolidated turnover of these entities stood at:

• ₹12.4 crore in FY 2023-24

• ₹12.2 crore in FY 2022-23

• ₹17.4 crore in FY 2021-22 (which included non-recurring Covid-19 related revenue of ₹6.2 crore)

No Related Party Involvement

As per disclosures, this acquisition is not classified as a related party transaction. Additionally, Metropolis’s promoter group has no interest in the target entities, and the transaction has been conducted at arm’s length.

Strategic Objectives of the Acquisition

This acquisition aligns with Metropolis's broader strategy to strengthen its regional diagnostic network in North India. It follows two recent acquisitions:

• Core Diagnostics, a leader in oncology testing, and

• Scientific Pathology, the dominant diagnostic chain in Agra.

These acquisitions have significantly boosted Metropolis’s North India revenue contribution from 8% to an estimated 14–15%. The addition of the Dehradun-based Dr. Ahujas’ chain solidifies the company's presence in Uttarakhand.

“This deal adds another strong regional player to our expanding diagnostic portfolio, enabling us to serve patients across more locations in Northern India with superior quality,” said a Metropolis spokesperson.

Transaction Structure and Escrow Arrangement

The entire consideration of ₹35.01 crore will be paid in cash. Out of this amount, a mutually agreed escrow arrangement will hold up to ₹3 crore, which will be released based on conditions detailed in the BTA. This ensures a secure and performance-linked transfer process.

No Government Approvals Required

Importantly, no regulatory or governmental approvals are necessary for this acquisition, which streamlines and accelerates the closing timeline.

Significance for Metropolis and the Indian Diagnostic Market

The diagnostic industry in India has witnessed increased consolidation and regional dominance strategies in recent years. With increased demand for quality diagnostic services and a growing preference for accredited labs, players like Metropolis are working towards expanding both footprint and capability.

By acquiring well-established regional leaders, Metropolis is not only gaining access to a strong customer base but also leveraging trusted brands and local expertise to grow faster and more sustainably in high-potential markets like Uttarakhand.

Conclusion

Metropolis’s acquisition of the Dr. Ahujas’ Pathology & Imaging Centre group in Dehradun marks another strategic milestone in its vision to build a regionally diverse, high-quality diagnostic network across India. The ₹35 crore cash deal, executed through its subsidiary Metropolis Histoxpert, follows similar acquisitions across North India, driving significant revenue contributions and market expansion.

As healthcare players continue to tap into Tier 2 and Tier 3 cities, such slump sale transactions and strategic takeovers will likely become increasingly common. With no regulatory hurdles and solid brand synergy, this acquisition positions Metropolis to enhance diagnostic access and standards in Northern India.

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