The Hindu Business Line : RFCL buys Wipro BioMed

New Delhi/Bangalore, July 24 RFCL Ld, an ICICI Ventures company, has acquired Wipro BioMed, an outfit of the Bangalore-based IT major, for an undisclosed sum. Wipro BioMed addresses the healthcare market by distributing products of some 20 principal partners in areas of diagnostics, medical systems and life sciences segments.

As part of the deal, Wipro will be transferring its entire BioMed business, about 80-100 employees, assets, liabilities, operations, customers and partnerships included to the Life Sciences and Laboratory solutions provider.

Healthcare foray

Mr Harsha Lal, Vice-President, Wipro BioMed, said the international environment had changed considerably, with mergers and acquisitions, and big players wanting to enter the Indian healthcare market themselves.

“We believe it is best to team up with RFCL, a strong and committed organisation, for a mutual win-win for us and all stake holders. This shall enable the new entity to grow rapidly,” Mr Lal said. “The idea was to combine forces, which had complimentary businesses,” he added. Revenues of Wipro BioMed were not known.

Wipro BioMed will be integrated with the RFCL’s diagnostic division – Diagnova. With this move, RFCL will be foraying into life sciences and medical business. “This acquisition will enable RFCL to enter into the high growing segments of in-vivo diagnostics, fully automated clinical chemistry and haematology, and research solutions. Together with BioMed, RFCL will be able to achieve critical mass and emerge as key player in the $375 million market which is growing at a rate of 15 per cent per annum," said Mr Sushil Mehta, Managing Director, RFCL, in a press release.

Both RFCL and Wipro declined to comment on the value of the transaction. However, an RFCL spokesperson said the company would fund it on its own. “This would not only give us access to a complimentary customer base, but also allow us cross-sales opportunities,” said the RFCL spokesperson.

The company comprises the allied Animal Healthcare, Fine Chemicals and diagnostic businesses of Ranbaxy Laboratories Ltd, which were acquired by ICICI Ventures. RFCL has partnerships with Alpharma, Biokit, Fisher Scientific and Mallinckrodt Baker amongst others.