Medvantage Insurance TPA Will Be Acquire By Medi Assist
The largest Third-Party Administrator (TPA) for health insurance in the country, Medi Assist, is preparing to buy a 100% stake in Mumbai-based Medvantage Insurance TPA, one of the first TPAs to manage prestigious corporate clients like Microsoft and Wells Fargo.
According to three people familiar with the situation, the companies last week inked a definite agreement toward this merger and are currently seeking Insurance Regulatory and Development Authority (IRDA) permission for the same.
According to industry experts, the deal's apparent size is around 35 crore. Both merging entities were unable to corroborate this. However, it is believed that Medi Assist will use funds from its balance sheet to finance the deal.
According to Medi Assist's chief executive officer Satish Gidugu, the acquisition will help the largest TPA in the country boost its market share within the corporate sector of the industry from 27% to 30%.
Gidugu told a news agency that “Medvantage has over 100 high-quality corporate accounts which have prompted us to explore this acquisition,” Gidugu informed the news agency. “We always explore inorganic growth and have more plans in the pipeline. The outlook to grow business across all segments – retail, corporate and government business – will drive our future strategy.” In 2021–2022, Medvantage (formerly known as UnitedHealthcare Parekh Insurance TPA) managed corporate premiums worth 700 crore and made 30 crore in revenue.