Out-of-hospital care provider HCAH acquires Nightingales Home Health in share swap deal
The acquisition will help HCAH gain a strong foothold in southern India and strengthen its rehabilitative and geriatric care services.
Thursday April 20, 2023,
3 min Read
Noida-based(HCAH) has acquired Nightingales Home Health Services, a Bengaluru-based home healthcare provider, in a share swap deal. The deal will make HCAH the largest company in an out-of-hospital care provider in India.
The acquisition will help HCAH gain a stronger presence in southern parts of India, catering to eight major cities with over 3,000 healthcare professionals, Vivek Srivastava, Co-founder and CEO of HCAH, told YourStory. HCAH currently has a concentration in north India.
“Our strategy is to go deep rather than wide, and we want to be the largest player in the markets we operate. This acquisition has ensured the same for our key markets," said Ankit Kumar Goel, Chief Strategy and Product Officer at HCAH. "It has also shattered the notion that we are a North India-centric company. Now, we are larger in the south than in the north."
Nightingales’ Co-founder and Chairman Vishal Bali, who previously worked with Fortis Hospitals and TPG Growth, will join HCAH as a shareholder.
"We will focus on rehabilitative care—both restorative and geriatric—as core business areas going forward," Srivastava said, adding that the synergy with Nightingales will help fuel these segments.
"Nightingales has a 20-year history of building a highly-skilled, specialised home healthcare delivery network, which we believe will play a significant role in helping us provide comprehensive services to our customers," he added.
Founded in 2012, HCAH raised investments from the Burman Family (Promoters of Dabur), Founders of Healthcare at Home UK, and Quadria Capital, a Singapore-based healthcare fund and ABC Impact.
It provides three main types of services: physical rehabilitation and recovery, elderly care services and assisted living, and chronic disease management services, including screening, diagnostics, and infusions. It has a presence in over 70 cities.
Nightingales, established in 1996, offers services ranging from chronic disease management, including pulmonology, cardiology, neurology, metabolic diseases, and orthopaedics. It has a team of over 1,000 healthcare professionals and an established delivery network across four metro cities of Bengaluru, Hyderabad, Chennai, and Mumbai.
Bali said the scale and size achieved through the integration would lead health insurance companies to create new products to support patients to receive out-of-hospital care.
India’s health rehabilitation market is sized at $17 billion, estimated to grow at a CAGR of 15.5%, reaching $35 billion by FY28, according to a Redseer report.
HCAH will continue to seek opportunities and targeted acquisitions of critical healthcare assets across the region to continue building a technology-enabled out-of-hospital healthcare ecosystem across the country and overseas, it said in a statement.
Edited by Suman Singh