Thyrocare Technologies Announces Acquisition of Polo Labs’ Diagnostic Services

On July 2, 2024, Thyrocare Technologies Ltd announced that it had finalised a Business Transfer Agreement (BTA) with Polo Labs Private Limited (Polo) and its existing shareholders. Polo Labs Private Limited currently operates within the diagnostics and pathological services industry.

This agreement entails the acquisition of Polo’s diagnostic and pathological services business, including equipment, assets, intellectual property rights, brands, clients, and franchise operations, as a going concern on a slump sale basis.

The completion of this acquisition is subject to fulfilling the Conditions Precedent. The closing is expected within 30 business days upon receipt of the CP Completion Certificate, with a maximum timeframe of 60 business days from the BTA’s execution date.

Details Of The Transaction

The transaction involves Thyrocare Technologies (TTL) acquiring Polo Labs Private Limited’s diagnostic and pathological services business through a slump sale. This acquisition is structured as a transfer of Polo’s business as a going concern, as defined under Section 2(42C) of the Income-tax Act, 1961, based on terms outlined in the Business Transfer Agreement (BTA) and related Definitive Agreements.

Objective of Acquisition

Thyrocare’s objective with this acquisition is to strengthen its footprint in this sector, expanding its service offerings and market presence. The transaction does not require specific governmental or regulatory approvals, facilitating a smooth transfer of business operations as outlined in the BTA and related agreements.

Acquisition Details

The transaction involves a cash consideration of ₹4.26 crore for acquiring Polo Labs Private Limited’s diagnostic and pathological services business. No acquisition of shares, voting rights, or control is contemplated in this arrangement.

About Thyrocare Technologies Ltd

Thyrocare Technologies operates in healthcare and provides affordable diagnostic services across India. Established in 1996 in Mumbai as a budget-friendly thyroid testing centre, it has grown into a global leader, offering various medical tests and disease management services. About 61% of Thyrocare Technologies’ revenue comes from franchise operations. These include small, independent collection centres, local laboratories, and partnerships with nursing homes and hospitals.

On July 3, 2024, the share price of Thyrocare Technologies Ltd opened at ₹654.70, touching the day’s low at ₹643.00, as of 10:29 AM on the NSE.

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