In a deal estimated to be worth over Rs 400 crore, Medi Assist Healthcare Services, which provides insurance companies with third-party administration services, announced on Monday that it will entirely acquire Paramount Health Services & Insurance TPA.
A deal has been signed by Medi Assist Insurance TPA, a wholly-owned subsidiary of Medi Assist Healthcare Services, with Fairfax Asia and Nayan Shah & family to purchase Paramount Health Services & Insurance TPA, which is situated in Mumbai.
Owned by the Shah family and Fairfax Asia, Paramount is a major participant in the TPA market.
According to the firm, Medi Assist TPA’s market share will increase to 23.6 percent of the health insurance industry and 36.6 percent of the group segment after the purchase of Paramount TPA. This is due to premium management.
The agreement was reached at an enterprise value of around Rs 311 crore, and it also said that approximately Rs 110 crore in cash equivalents will be paid as part of the purchase.
Subject to regulatory (Irdai) approvals, the transaction represents one of the biggest TPA deals in India, it continued.
In addition to over 3,000 retail policyholders and 30 insurers, Paramount TPA serves group customers as well.
This calculated action bolsters our position as industry leaders and advances our long-term goal of facilitating easy access to high-quality healthcare. “I’m excited to have the Paramount team join the Medi Assist family and help us reach even bigger goals,” stated Satish Gidugu, CEO of Medi Assist.
The merger of two top TPAs, according to Paramount TPA MD Nayan Shah, will help fulfil the goal of universal insurance by 2047.