Max Healthcare Institute Ltd announced on Friday that it will entirely purchase Starlit Medical Centre Pvt Ltd for an enterprise value of Rs 940 crore, giving it ownership of Lucknow's 550-bed Sahara Hospital.

Max Healthcare Institute said in a statement that it had executed a binding share purchase agreement (SPA) for the acquisition of a 100 percent stake in Starlit Medical Centre Pvt Ltd, which had entered into a business transfer agreement with Sahara India Medical Institute Ltd for the purchase of a healthcare undertaking consisting of the 550-bed Sahara Hospital, Lucknow, on a slump sale basis.

According to the business, the SPA was negotiated for an enterprise value of Rs 940 crore through one of its wholly-owned subsidiaries, Crosslay Remedies Ltd (CRL).

This acquisition marks Max Healthcare's entry into Lucknow, one of the fastest growing cities in Uttar Pradesh, according to the company. Sahara Hospital is a tertiary care hospital that offers integrated healthcare services, including gastroenterology, neurology, surgery, cardiology, pulmonology, and diagnostics under one roof.

Abhay Soi, Chairman and Managing Director of Max Healthcare Institute, stated that the acquisition is consistent with the company's objective of expanding into new Tier I and Tier II cities with a strong healthcare services ecosystem.

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"Given our track record of successful post-merger integration, we expect to quickly improve the operating and financial performance on the strength of medical excellence of our clinicians and continued patronage from our patients," he said in a statement.

Sahara Hospital's present operational bed capacity is roughly 250 beds, with a revenue run rate of Rs 200 crore in FY24. Every year, it serves approximately 2 lakh patients. According to the statement, it also boasts a nursing college on the same grounds with an annual intake of more than 100 students.