New Delhi: New-Delhi based Dr Lal PathLabs Limited (LPL) will be acquiring Sequoia Capital-backed Suburban Diagnostics in an all cash deal, The diagnostic giant in a regulatory filing said that the existing cash reserves will fund the deal.
Dr Sanjay Arora, the Founder of Suburban Diagnostics will join Dr Lal PathLabs as the Group Medical Director. The acquisition is expected to close in a month.
The New-Delhi based healthcare provider is making the purchase at an enterprise value of 18.5 X of FY22 audited Earnings before Income Tax Depreciation and Amortisation (EBITDA) of Suburban Diagnostics, it said.
This works to a minimum enterprise value of Rs 925 crore with a cap of Rs 1,150 crore, the company told the exchanges. Suburban Diagnostics reported revenues of Rs 294 crore in FY 21 and an EBITDA of Rs 57.5 crore, the media statement said.
Through this deal, LPL will have access to over 150 collection centres, 44 laboratories and diagnostics centres of Suburban, out of which one is CAP-accredited and five are NABL-accredited.
“Our joining hands with the Suburban Diagnostics is a significant step in LPL’s endeavour to expand our footprint in Western India. I am confident that our combined strengths and a similar DNA of both the companies- led by doctor promoters, will lead to new heights in serving our customers across Western India,” said Executive Chairman Dr Arvind Lal.
