Apollo Cradle and Fertility, Cloudnine to merge

Apollo Health and Lifestyle Limited’s (AHLL) standalone Mother & Child and Fertility verticals, operating under the brands Apollo Cradle and Apollo Fertility respectively, have entered into a combination with Kids Clinic India Limited’s Mother & Child and Fertility businesses operating under the Cloudnine brand, to create one of India’s largest integrated maternity and fertility care platforms with a strong presence across key markets.

The combination is subject to regulatory approvals, including CCI. Following completion of the transaction, AHLL will hold a 9.9 per cent stake in the combined entity, making it the largest non-financial shareholder of the platform. AHLL will also have board representation in the combined entity through a nominee director.

The proposed combination values AHLL’s standalone Mother and Child and Fertility verticals at INR 1,550 crores, represented through a combination of cash and 9.9 per cent equity stake in the combined entity.

With 55+ centres, the combined platform will be a significant player across operating markets with strong network presence of both the brands, serving patients across various geographies, income and target segments, by way of access to the highest clinical experience. The combined entity will also have one of the largest senior clinician pools, operating under a world class clinical governance structures, with ability to deliver services seamlessly across the combined network.

The combined entity will further strengthen network presence of both the brands and synergise efforts to continually ramp up the centres in a defined manner, expanding services in existing markets, also enhancing presence in Tier 1 and 2 locations more intensely.

The combined entity is backed by marquee investors namely Temasek, True North and TPG NewQuest. AHEL, represented through its subsidiary AHLL, will be the largest non-financial shareholder of the combined entity. Cloudnine founders will continue to hold minority stake in the combined entity.

Commenting on the partnership Dr. Sangita Reddy, Chairperson, AHLL said “Apollo Cradle helped redefine specialised maternity and newborn care in India by combining clinical excellence with holistic, woman-centric care. This partnership marks a pivotal moment for the future of women’s healthcare in India.
Together, we are India’s largest maternity network and potentially one of the world’s largest platforms dedicated to women and children’s health. At a time when healthcare systems globally are reimagining care for women across every life stage, India has the scale, talent, and innovation capability to lead.
Apollo remains deeply committed to expanding women’s health of all age group and would continue to build capability, capacity for all segments, disease conditions, preventive and early detection through various other formats including its large Multispecialty Tertiary Care hospitals, and a holistic women and child health offering in existing and future geographies.”