QMS Medical Allied Services Ltd executes binding term sheet to acquire Saarathi Healthcare Pvt Ltd and Prometheus Healthcare Pvt Ltd

Acquisition in line with company’s key strategic priorities and will further expand company’s total addressable market in the value-added of Healthcare business.

Mumbai (Maharashtra) [India], October 31: Medical devices company, QMS Medical Allied Services Ltd (QMS) has executed binding term sheet to acquire Saarathi Healthcare Pvt Ltd and Prometheus Healthcare Pvt Ltd. The acquisitions are in line with company’s key strategic priorities and aims to further expand company’s total addressable market in the value-added of Healthcare business.

Saarathi Healthcare Private Limited is engaged in the business of running Disease management, early diagnosis, screening with POC devices and otherwise, disease awareness, access programs across therapy by using digital tools as well as physical interaction models. The Company was incorporated on October 21, 2010 is headquartered at Thane, Maharashtra. Company’s revenue from Operations for FY 22-23 was Rs. 59.90 crore.

Prometheus Healthcare Private Limited is engaged in the business of Digital marketing, client servicing, booths / conferences, CMEs and other healthcare related services. The Company was incorporated on June 11, 2013 is headquartered at Thane, Maharashtra. Company’s revenue from Operations for FY 22-23 was Rs. 2.00 crore.

Acquisition Terms – M/s. Saarathi Healthcare Pvt Ltd QMS has agreed to acquire upto 8,25,000 shares and cash Assets of M/s. Saarathi Healthcare Pvt Ltd by way of secondary acquisition, in one or more tranches, for a consideration of Rs. 17.59 crore plus net cash surplus as on cut-off date for the first tranche representing 51.00% of the total issued, subscribed and paid-up share capital of the Company amounting to 4,20,750 equity shares of Saarathi Healthcare Pvt Ltd; and The Company shall further acquire 25% of the total issued, subscribed and paid-up share capital of the Company amounting to 2,06,250 Equity Shares and consideration at an agreed FY 2024-25 EBIDTA multiple based valuation and upon the terms and conditions as agreed under the term sheet executed between the PartiesThe Company shall further acquire 24% of the total issued, subscribed and paid-up share capital of the Company amounting to 1,98,000 Equity shares and consideration at an agreed FY 2025-26 EBIDTA multiple based valuation and upon the terms and conditions as agreed under the term sheet executed between the Parties; The proposed transaction shall deem to include the acquisition of Vivra Wellness Pvt Ltd i.e, a 100% subsidiary of the Saarathi Healthcare Private Limited.

Acquisition Terms – M/s. Prometheus Healthcare Private Limited QMS has agreed to acquire upto 10,000 shares of M/s. Prometheus Healthcare Private Limited, by way of secondary acquisition, in one or more tranches, for a consideration of Rs. 41 lakh for the 100% of the total issued, subscribed and paid-up share capital of the company amounting to 10,000 equity shares of Prometheus Healthcare Private Limited as per the terms and conditions agreed under the term sheet executed between the Parties.

Incorporated in 2017, QMS Medical Allied Services Limited is engaged in the marketing and distribution of a wide range of medical products as well as medical education services. The company’s products are sold under brand name “QDevices” and they also manage the distribution for other brands such as 3M, Heine, Rossmax etc. The company offers medical products such as Blood Pressure Monitors, Glucose Monitoring Kits and strips, Dental Products, Personal protection kits eg-PPE kits, Infection prevention, Stethoscope and Oxygen Concentrator. The company operates three business verticals and offers 600+ SKUs with 130+ customers. For FY22-23, QMS Medical has reported net profit of Rs. 6 crore and sales of Rs. 104 crore.

QMS Medical Allied Services Ltd launched its public issue of Rs. 56.87 crore in September 2022 to fund company’s expansion plans including meeting additional working capital requirements and general corporate purposes. IPO comprised of a fresh Issue of 28 lakh equity shares and Offer for sale of 19 lakh equity shares of face value Rs. 10 each at a price of Rs. 121 per share (including a premium of Rs. 111 per equity share) aggregating Rs. 56.87 crore. Post issue promoter group holding in the company came to 73.67%.

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