*Apax Partners* may invest about Rs 200 Cr in *Metropolis Healthcare*. Apax
may buyout *ICICI Venture's* 25% stake in Metropolis and will invest further
cash in the company.

ICICI had invested $7.8 Mn for a 25% stake in Metropolis in 2006 through its
*India Advantage Fund Series I*.

TA Associates is also keen in acquiring a stake in Metropolis.
 Transaction Note

Metropolis Healthcare offers a range of services including laboratory
medicine, radiology and imaging services, hospital laboratory management and
remotepathology testing services. It has 55 flagship labs spread across
India, Sri Lanka, UAE, South Africa, Bangladesh and Seychelles.

Metropolis intends to use the funds for expansion through the inorganic
route. It has been agressively growing through acquisitions for the past
five years. It has made 12 acquisitions in five years and had recently
acquired Bangalore based RV Diagnostic Laboratory.

Apax Partners operates across USA, Europe, Israel and Asia. This would be
its second investment in an Indian Company. Earlier in 2007, it had invested
$104 Mn in Apollo Hospitals Enterprise.

*Indian Diagnostics Market*

India's medical diagnostics market, estimated at over Rs 10,000 crore, is
expected to see consolidation moves with the corporate chains vying to
acquire standalone regional labs.

The diagnostics market is projected to grow between 15-20% as the per capita
spend on healthcare rises on the back of expanding insurance coverage and
better infrastructure. While India spends almost 6% of its GDP on
healthcare, the average per capita figures are not as robust as the overall
spend.

Other players in this business are also looking to raise funds through
various routes. Thyrocare is also looking to raise funds through stake sale.


-- 
Regards

Hardik Shah

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