Medi Assist Insurance TPA has announced its plans to acquire Paramount Health Services & Insurance TPA (Paramount TPA) in a landmark deal valued at over Rs 400 crore, marking one of the largest transactions in India’s third-party administrator (TPA) sector.
In a strategic move to solidify its leadership position, Medi Assist will acquire 100% of Paramount TPA, a significant player in the TPA space, from its current owners, Fairfax Asia and the Shah family. The acquisition is valued at Rs 311.8 crore for the enterprise and is expected to exceed Rs 400 crore in equity value.
The acquisition is poised to enhance Medi Assist’s market share by approximately 6% in the Group insurance segment and by around 4% across the overall health insurance market, which includes both Group and Retail segments, based on projections for March 2024. The transaction is currently pending approval from the Insurance Regulatory and Development Authority of India (IRDAI).
This acquisition marks a significant milestone for Medi Assist, which has been focusing on expanding its technological capabilities, including AI and machine learning, and growing its provider networks. The integration of Paramount TPA is expected to position Medi Assist as a strategic long-term partner for general insurers, standalone health insurers (SAHI), and life insurers.
Gobinath Athappan, Chairman & CEO of Fairfax Asia, commented on the acquisition, saying, “Paramount TPA has performed really well over the past years under Dr. Nayan Shah’s leadership. We are thrilled that in its new home, Medi Assist TPA, it will reach greater heights.”
Dr. Nayan Shah, Managing Director of Paramount TPA, also expressed optimism about the merger: “The coming together of two leading TPAs will go a long way in delivering on the promise of Insurance for all by 2047.”
Satish Gidugu, CEO of Medi Assist, emphasized the strategic importance of the acquisition, stating, “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.”
Paramount TPA currently collaborates with 30 insurers and serves over 3,000 group customers and retail policyholders. With this acquisition, Medi Assist’s TPA market share is expected to grow to 36.6% in the group insurance segment and 23.6% of the overall health insurance industry, as measured by premiums managed.
The acquisition is subject to standard closing conditions and regulatory approvals from IRDAI. Once finalized, it will further solidify Medi Assist’s standing as a leading player in the TPA industry, providing robust and efficient healthcare solutions across India.