In One of the Largest M&As in the IVF Space, Indira Now Valued at an Estimated $1.1 Billion.
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BY: Lisa Munger
Hong Kong-based investment firm BPEA EQT, formerly known as Baring Private Equity Asia, is set to acquire a 60% stake in Indira IVF, an Indian fertility services provider, for $656.6 million, according to a report on July 28 by multiple outlets.
The Deal
The deal places a valuation of $1.1 billion on Indira IVF, according to a reporter by Mint Media. Indira operates a network of 116 clinics across India.
Indira IVF CEO Kshitiz Murdia, M.D. told Inside Reproductive Health the company employs 250 full-time Gynecologists. Indira has 2,700 employees and 150 Embryologists, Gitika Sharan, a company representative told Inside Reproductive Health. The company does 33,000 IVF cycles on average each year.
Given Indira’s wide scope of influence in India and beyond, analysts note the import and historical landmark of the deal.
“It’s a big milestone event for the Indian health industry, especially for the business because it’s the second most valuable IVF transaction across the globe,” Vinesh Gadhia, an IVF industry expert on the Indian market told Inside Reproductive Health.
In another billion dollar M&A in the space, The New York-based buyout firm KKR & Co. Inc., completed the acquisition of Spanish-based IVIRMA Global SL in January for approximately $3.8 billion according to Market Screener.
Further, in February 2022, fertility startup Kindbody completed its acquisition of Vios Fertility Institute, along with its network of clinics. This move has allowed Kindbody to achieve a valuation of $1.15 billion, another high-figure M&A of late.
Sweden's EQT, the parent company of BPEA EQT, released a statement confirming the acquisition, specifying that the stake would be purchased from private equity firm TA Associates and Indira IVF's founders. While the statement indicated that the founders would retain a minority stake in the company and continue to lead it, it did not disclose the exact size of the stake or the deal's total value.
Indira was the last IVF related company in TA Associates’ possession according to its publicized portfolio. TA Associates sold its stake in CCRM Fertility in 2021, according to a report by Business Wire.
Beyond TA’s divestiture, BPEA representatives said they plan to expand in Asia in their statement on the subject.
“BPEA EQT will invest in Indira IVF’s R&D capabilities and technology while further broadening its footprint across India and exploring expansion into neighboring markets, making fertility services and reproductive health more accessible to couples,” the statement read.
BPEA EQT representatives declined a request for comment.
Growth Beyond India
Murdia said the deal will help the company to expand its influence in the rapidly growing market.
“Indira IVF has a solid foundation built in the last four to five years on compliance, governance, systems and processes that has truly institutionalized the whole medical and non-medical operations we do,” he said.
“With many years of experience training people and being successful in many geographies in India the company feels very comfortable to take on international expansions and acquisitions to grow beyond the Indian subcontinent especially in Asia Pacific and BPEA has had the experience of owning businesses in Asia Pacific which would really fuel the growth of Indira IVF in Asia Pacific,” he said.
Testing Business Viability with Increased Regulation
For analysts like Gadhia, the deal portends positive outcomes for both parties.
The investment firm's strategic move into India's healthcare industry will likely position Indira IVF for further growth and expansion under the new ownership, Gadhia said. It shows the hand of the Assisted Reproduction Assistance (ART) Act in motion, he added.
The ART Act, passed in 2021 by the Rajya Sabha, was aimed at overseeing and governing ART clinics and ART banks in India. Its primary focus was to ensure proper supervision, regulation, licensing and promotion of ethical practices in the rapidly evolving field of assisted reproduction.
For Gadhia, the deal with BPEA is a litmus test to determine how the ART Act operates in the “real world.”
“It’s significant because the deal may stand as a new benchmark," he said. It proves as testimony that the Indian IVF business is set to take off and is on a major growth trajectory. It also reveals that the ART regulation act hasn’t significantly increased global investors’ confidence in the Indian IVF space.”
The deal remains subject to regulatory approvals and finalization processes, according to multiple outlets.
The themes reported in this publication are those of the news. They do not reflect the views of Inside Reproductive Health, nor of the Advertiser
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