Bajaj Finserv Health, a wholly-owned subsidiary of Bajaj Finserv, announced the proposed acquisition of 100 per cent stake in Vidal Healthcare Services for ₹325 crore.

The acquisition is expected to close in Q4 FY24, subject to condition precedents and regulatory approvals, following which Vidal Healthcare will become a wholly-owned subsidiary of Bajaj Finserv Health.

It will help expand Bajaj Finserv’s capabilities in the healthcare space and empower it to service consumer needs for hospitalisation, it said in a release.

“Vidal Health brings deep domain knowledge and vast experience in healthcare administration in India. This, combined with Bajaj Finserv Health’s superior digital experience and data management prowess, enables the company to be uniquely placed to lead healthcare transformation that is underway in India,” said Devang Mody, CEO and Wholetime Director, Bajaj Finserv Health.

Bajaj Finserv Health is a digital-first healthtech company with a network of over 1 lakh doctors, 5,500 lab touch points and 2,100 hospitals. It is also a partner with Ayushman Bharat Digital Mission and a facilitates healthcare transactions on the Unified Health Interface (UHI) network.

Vidal Healthcare is among India’s largest healthcare administrators, and provides Insurtech solutions and Knowledge Process Outsourcing (KPO) services to global insurance and health administrators as part of its international business. 

Wholly-owned subsidiary, Vidal Health Insurance TPA, services premium of over ₹5,000 crore, covering 13 crore lives, and has significant presence in servicing corporate group policies, retail insurance as well as government health schemes.

The acquisition will thus enable Bajaj Finserv to offer OPD, wellness, as well as hospitalisation benefits to customers, thereby providing continuum of care. It will also help Bajaj Finserv Health in playing a pivotal role in various healthcare initiatives of the government and the insurance regulator, the company said.

Girish Rao, Chairman and MD, Vidal Health said that it will enable the company to bolster its technology capabilities, fuel quality focused expansion and help it remain at the forefront of the industry in providing innovative and flexible solutions.

JM Financial is the financial advisor for Bajaj Finserv Health, while Ernst & Young conducted Financial and Tax Due Diligence and Chitale Legal are the legal advisors. PwC Corporate Finance is the financial advisor to Vidal Health, while Ernst & Young provided Tax advisory and Shardul Amarchand Mangaldas are the legal advisors.