Baring PE Asia to pick up 60-65% stake in Indira IVF
Baring PE Asia EQT (BPEA EQT) will acquire 60-65% of Indira IVF for $650-700 million, the largest provider of fertility services in India and in the top five globally in terms of annual in vitro fertilisation (IVF) cycles. The deal was signed before other contenders could submit binding offers by this week's deadline, said people directly involved in the matter. The chain has been valued at $1.1 billion (₹9,000 crore), they said.
BPEA EQT has paid a premium of about 22 times Indira IVF's ebitda. Indira IVF posted revenue of ₹1,250 crore in FY23 at an ebitda of ₹375-400 crore, said people aware of the matter. Global investors such as BPEA EQT and Blackstone had submitted non-binding bids to acquire a majority stake, valuing the chain at $1-1.2 billion, ET was first to report on June 6.
The investor is likely to end up with a stake of about 60%, with existing investor TA Associates selling its 47% holding and the promoters diluting additional stakes, ET had reported. The other contenders were GA and CVC Capital. TA Associates had acquired about 35% in the company in 2019 for ₹1,100 crore, and an additional 12% later.
TA will reap a fourfold return on its investment in rupee terms based on the numbers above. BPEA EQT, an active investor in the Indian healthcare space, is also in advanced negotiations to acquire a minority stake in Hyderabad-based Asian Institute of Gastroenterology (AIG) Hospitals from Quadria Capital. In India, BPEA EQT owns healthcare-focussed business process management company Sagility LLC (formerly Hinduja Global Solutions Healthcare LLC), acquired in 2021 for ₹7,500 crore ($1 billion).'Heightened Deal Activity' It also owns healthcare analytics company CitiusTech, acquired from PE firm General
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