New Delhi, May 21 -- Kids Clinic India Ltd, the operator of mother and childcare hospital chain Cloudnine, has agreed to acquire the maternity, childcare and fertility business verticals of Apollo Health & Lifestyle Ltd in a cash-and-stock deal.
Cloudnine will merge Apollo Specialty Hospitals Pvt Ltd, which operates mother and childcare clinics under the Apollo Cradle brand, and Apollo Fertility Centres Pvt Ltd with itself. Apollo Cradle and Apollo Fertility are currently wholly owned by Apollo Health, which itself is a unit of Chennai-based Apollo Hospitals Enterprise Ltd.
The transaction values Apollo Cradle and Apollo Fertility at a combined Rs 1,550 crore (about $161 million), Apollo Health said in a statement on Thursday.
The company also said that it will own a 9.9% stake, valued at Rs 785 crore, in Cloudnine after the merger. This effectively means the transaction values Cloudnine around Rs 7,930 crore, or about $825 million, back-of-the-envelope calculations show.
Cloudnine is majority owned by its investors, which include Singapore state investment firm Temasek and private equity firms TPG NewQuest and True North. Its founders, R. Kishore Kumar, Rohit MA and Vidya Kumar, hold a minority stake.
Apollo Health said the deal creates one of India's largest integrated maternity and fertility care platforms. Cloudnine operates 46 hospitals across Bengaluru, Delhi-NCR, Hyderabad, Mumbai, Pune, Chennai, and Punjab. Apollo Cradle operates 12 maternity centres in Hyderabad, Bengaluru, Chennai, Delhi-NCR and Punjab, while Apollo Fertility runs 20 fertility centres across India.
Cloudnine began with a single clinic in 2006. It has been on an expansion spree, adding new hospitals to grow its footprint, a strategy that weighed on its financial performance, resulting in lower operating margins, VCCircle reported last year.
Still, the company's revenue grew 25% to Rs 1,486 crore in FY25, according to VCCEdge. Meanwhile, Apollo Cradle posted revenue of Rs 351.53 crore and Apollo Fertility recorded revenue of Rs 100.05 crore for FY26, Apollo Health said. This is up from Rs 319.25 crore and Rs 93.67 crore in FY25, according to VCCEdge.
The transaction is subject to regulatory approvals, including from the Competition Commission of India.
Apollo Health is one of India's largest retail healthcare platforms, with a significant presence in primary care, diagnostics, day care surgeries, maternity, fertility, dental, dialysis and diabetes care.
Published by HT Digital Content Services with permission from VC Circle.