9/27/2017 Apollo Health acquires Nova Specialty Hospitals | Business Standard News

Apollo Health acquires Nova

Specialty Hospitals

The Rs 135-145 crore deal gives it

larger footprint, including in newer
markets
Apollo Health and Lifestyle Ltd (AHLL), a wholly-owned
subsidiary of Apollo Hospitals Enterprise, has acquired Bengaluru-
based Nova Specialty Hospitals at an estimated cost of Rs 135-145
crore.

The acquisition fits the growth strategy of AHLL, providing it a

larger footprint, including in many markets where the company
currently has no presence. The acquisition has been funded
through debt and equity components, said a senior executive of
Apollo. The deal gives it entry into new markets.
Sangita Reddy, joint managing director, Apollo Hospital Enterprise
Ltd, said, “AHLL is currently present in the secondary care segment
through the day surgery and cradle formats. Given the potential
and the need for quality health care delivery closer to the home, the
acquisition will enable AHLL to expand its footprint.”

The chain of 11 facilities of Nova is spread across eight cities, and

will add to Apollo's network of 45 modular operation theatres,
added Reddy. The combined network will clock a turnover in the
range of Rs 115-125 crore for the financial year ending March 2015.

"With the synergies that Apollo brings to the table, the

management expects to break-even in the next 18-24 months,"
added Reddy. Acquisition of the hospital will mean the addition of
over 300 beds that Nova has. Nova has been a loss-making entity.

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9/27/2017 Apollo Health acquires Nova Specialty Hospitals | Business Standard News

She said, "There is a strong synergy between Nova Specialty

Hospitals format and tertiary care hospitals. We intend to capture
these synergies to the benefit of the patients we serve and doctors
we partner with."

The acquisition will see Apollo entering new markets such as

Mumbai, Jaipur and Kanpur. In the coming months, Apollo will re-
launch these centres with new branding, an expanded menu of
services and quality systems built on Apollo's expertise, Reddy
informed.

Neeraj Garg, chief executive officer, AHLL, said, “AHLL is aiming

to create a business of Rs 500 crore in five years in the space of
multi-speciality short stay/day surgery centres.”

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