Medi Assist Healthcare To Acquire Paramount TPA In Rs 400 Crore Deal

Medi Assist Healthcare Services, which offers third-party administration services to insurance firms, said it will fully acquire Paramount Health Services & Insurance TPA on Monday, in a deal valued at over Rs 400 crore.

Medi Assist Insurance TPA, a fully-owned subsidiary of Medi Assist Healthcare Services, has signed an agreement with Fairfax Asia and Nayan Shah & family to acquire Paramount Health Services & Insurance TPA, a Mumbai-based company.

Paramount is a prominent player in the TPA space, owned by Fairfax Asia and the Shah family.

Following its acquisition of Paramount TPA, Medi Assist TPA's market share will rise to 36.6% in the group segment and 23.6% across the health insurance industry, based on premiums managed. The transaction was finalized at an enterprise value of approximately Rs 311 crore, with around Rs 110 crore in cash equivalents included in the deal.

The acquisition represents one of the largest TPA deals in India, subject to regulatory (Irdai) approvals, it added.

Paramount TPA works with 30 insurers, and over 3,000 group customers and retail policyholders.

"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," Medi Assist Chief Executive Officer Satish Gidugu said.

Paramount TPA Managing Director Nayan Shah said the coming together of two leading TPAs will go a long way in delivering on the promise of insurance for all by 2047.

(With Inputs From PTI)