Vidal Health Insurance TPA Pvt Ltd (VHITPA), services premium of over Rs 5,000 crore, covering 130 million lives. The acquisition now enables Bajaj Finserv Health, a subsidiary of Bajaj Finserv of to offer OPD, wellness, as well as hospitalization benefits to customers. The acquisition also helps Bajaj Finserv Health play a pivotal role in various healthcare initiatives of the government and the insurance regulator IRDAI
Bajaj Finserv Health Ltd. a wholly owned subsidiary of Bajaj Finserv Ltd, a holding company of diversified financial services companies including Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance, today announced the acquisition of of Vidal Healthcare Services Private Limited (VHC) at an enterprise value of Rs 325 crore.
VHC’s wholly owned subsidiary, Vidal Health Insurance TPA Pvt Ltd (VHITPA), services premium of over Rs 5,000 crore, covering 130 million lives.
After completion of the acquisition, VHC and its subsidiaries will become wholly owned subsidiaries of Bajaj Finserv Health Ltd.
VHC has generated consolidated revenue from operations of Rs 227 crore in FY2023.
The deal is expected to close in the fourth quarter of FY 2023-24, subject to satisfaction of condition precedents and regulatory approvals as applicable.
Bajaj Finserv Health is a digital-first health tech company having an extensive network covering over 1,00,000 doctors,5,500 lab touch points and 2,100 hospitals.
VHITPA has significant presence in servicing Corporate Group policies, Retail Insurance as well as Government Health schemes. VHC’s international business provides Insurtech solutions and Knowledge Process Outsourcing (KPO) services to global insurance and health administrators.
In order to ensure continuity of service for existing clients of VHC TPA, the present core management team will also continue.
The acquisition now enables Bajaj Finserv Health to offer OPD, wellness, as well as hospitalization benefits to customers, thereby providing continuum of care. The acquisition also helps Bajaj Finserv Health play a pivotal role in various healthcare
initiatives of the government and the insurance regulator IRDAI, said a release issued by Bajaj Finserv.
Bajaj Finserv Health is a wave 1 partner with Ayushman Bharat Digital Mission and a key player in facilitating healthcare transactions on the Unified Health Interface (UHI) network, added the release.
Bajaj Finserv Health has also been awarded by the National Health Authority (NHA) for facilitating the highest number of tele-consultations on UHI in December 2023.
Devang Mody, chief executive officer, Bajaj Finserv Health, said: “Vidal Health brings deep domain knowledge and vast experience in healthcare administration in India.”
Girish Rao, chairman and managing Director of Vidal Health said: “As health-tech changes the dynamics of healthcare administration in India, we are excited to be part of Bajaj Finserv as it enables us to bolster our technology capabilities and fuel quality focused expansion.
However sources said, Bajaj Allianz General Insurance, the non-life insurance subsidiary of Bajaj Finserv, will continue its existing system of servicing its health insurance business through inhouse TPA and will use Vidal Health Insurance TPA Pvt Ltd wherever it is commercially viable
JM Financial Limited acted as the exclusive financial advisor for Bajaj Finserv Health,while Ernst & Young conducted Financial and Tax Due Diligence and Chitale Legal were the legal advisors.
PwC Corporate Finance acted as the exclusive financial advisor to Vidal Health, while Ernst & Young provided Tax advisory and Shardul Amarchand Mangaldas were the legal advisors.