Aster DM Healthcare Merges with Quality Care India, Creating $5 Billion Entity with 10-15% EBITDA Expansion

Dec 2, 2024, 01:15 AM

Aster DM Healthcare has announced a significant merger with Blackstone-backed Quality Care India, creating a combined entity valued at approximately Rs 43,000 crore ($5 billion). The merger will be accretive to earnings per share (EPS) from the first year, according to Alisha Moopen, Deputy Managing Director of Aster DM Healthcare. The deal involves Aster DM acquiring 1.9 crore shares of Quality Care India at Rs 445.8 per share through a share swap agreement. This merger positions Aster DM among India's top three hospital chains and is expected to drive additional EBITDA expansion of 10-15% over the next 24-36 months, with a projected revenue compound annual growth rate (CAGR) for the combined entity. Aster DM's founder-chairman, Dr. Azad Moopen, is also involved in outlining the merger's roadmap and broader expansion plans.