On September 23, 2020 The Competition Commission of India (CCI) has approved an acquisition of 100% equity shares of Medlife International Private Limited (Medlife) by API Holdings Private Limited (API Holdings), the parent of PharmEasy and as consideration, the acquisition of up to 19.59% of the equity share capital of API Holdings on a fully diluted basis, by the Medlife Promoter Shareholders and other shareholders of Medlife. The Approval was given under the Section 31(1) of the Competition Act, 2002.
Note– Mr. Prashant Singh, Mr. Tushar Kumar and the Prasid Uno Family Trust (Trust) are collectively referred to as ‘Medlife Promoter Shareholders’.
Key Info
i.As per the filings made by the companies in August 2020, the deal values the stake of Medlife shareholders for about USD 200-250 million.
ii.The aim of the combination is to create one of the largest healthcare companies. The valuation of the combined entity is expected to be over USD 1 billion.
Gist about the Companies
API Holdings Private Limited (API Holdings)
API, a private company was incorporated in 2019. It accomplishes various business activities which includes transportation and delivery services mainly focused on the pharmaceutical sector and wholesale sale and distribution of drugs among others through its subsidiaries or directly.
Prasid Uno Family Trust(Trust)
Under the Indian Trusts Act, 1882, the trust, a private trust was incorporated.
It has diverse investments in the healthcare sector, which includes a majority shareholding in Medlife.
PharmEasy
It was founded in 2015. Mumbai-based online medicine and healthcare ordering app is backed by investors namely, Temasek Holdings and Bessemer Venture Partners and Infosys co-founder Nandan Nilekani.
Medlife International Private Limited (Medlife)
i.Medlife, incorporated in 2014 was co-founded by Mr. Prashant Singh and Mr. Tushar Kumar. Primarily, it is a healthcare company which engages in wholesale sale and distribution of drugs.
ii.Through pharmacies and online marketplace, the company sells pharmaceutical products, medical devices and Over-The-Counter(OTC)drugs.
iii.It also provides healthcare services like digital doctor consultation and online diagnostic tests services among others.
Headquarters– Bengaluru, Karnataka
CEO & Co-Founder– Ananth Narayanan
Recent Related News:
Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries Limited (RIL) has acquired 60% equity stake in Vitalic Health Pvt Ltd(Vitalic) and 100% direct equity ownership of its subsidiaries namely Tresara Health Private Limited, Netmeds MarketPlace Limited and Dadha Pharma Distribution Pvt Limited(collectively known
as Netmeds)for a cash consideration of around Rs 620 crore(USD 83.08 million). The deal values Netmeds around Rs 1,000 crore.
About Competition Commission of India (CCI):
Headquarters– New Delhi, India
Chairperson– Ashok Kumar Gupta
