Temasek-Backed Cloudnine Charges Ahead to Acquire ART Fertility for $400 Million: A Bold Move for Future Innovation!
A significant deal is unfolding in the healthcare sector, with Art Fertility valued at approximately $400 million. Industry insiders reveal that European strategic investor IVI has also expressed interest in the deal. Sources, who spoke on the condition of anonymity, indicate that two final bidders have emerged, with Cloudnine positioned as the likely frontrunner. This acquisition will provide Gulf Capital, an existing investor, with an exit strategy.
In line with this acquisition, Temasek is poised to reinforce its investment in Cloudnine, further enabling the company to finance the takeover. This move involves the entire business operations of ART Fertility, which encompasses divisions in both the Middle East and India. Investment bank Moelis & Co. is facilitating the transaction.
Despite inquiries, representatives from Temasek and Moelis declined to comment, and attempts to reach Cloudnine, ART Fertility, and Gulf Capital went unanswered. Temasek’s new financial injection comes on the heels of its previous $125 million investment in Cloudnine, where it secured a nearly 20% stake in the Bengaluru-based health service provider last year. This earlier deal, which valued Cloudnine at around $600 million, allowed venture capital firm Peak XV to exit after an 11-year investment.
Founded in 2006 by Dr. R Kishore Kumar, Rohit M.A., M. Ramachandra, and Vidya Kumar, Cloudnine operates a network of specialized hospitals focusing on fertility, maternity care, gynecology, pediatrics, neonatology, baby care, and stem cell banking. Currently, the chain boasts 34 centers across major Indian cities, including Bangalore, Delhi, Mumbai, Pune, Chennai, Gurgaon, Ludhiana, and Chandigarh, with twelve located in Bengaluru.
The acquisition is particularly timely for Cloudnine, as it prepares for a public listing anticipated later this year. This would mark the hospital chain’s second attempt at an initial public offering; it previously filed for a ₹1,200 crore IPO in 2022.
Leveraging ART Fertility’s established presence in Abu Dhabi, Al Ain, and Dubai, Cloudnine aims to expand its reach further with eleven clinics in India across cities such as Delhi, Chennai, Mumbai, and Ahmedabad. Gulf Capital states that ART Fertility has rapidly ascended to become a major player in both the Middle East and the Indian subcontinent, with plans for global expansion.
For the fiscal year 2024, Kids Clinic India Ltd, which operates Cloudnine, reported a consolidated revenue of $145.3 million, up from $119.8 million the previous year. The company narrowed its losses to $3.4 million from $5.3 million in fiscal 2023, according to data from Tracxn.
ICRA highlighted that Kids Clinic is set to benefit from consistent revenue growth due to the expansion of existing centers and improved revenue from new locations. The strategic diversification across northern, western, and southern India, along with plans to establish more units in tier I cities, is expected to drive further growth.
Despite facing challenges related to initial losses from new centers, ICRA predicts a gradual improvement in return on capital employed (ROCE) over the medium term, supported by a solid operational scale and improved profit margins from newly established facilities. With this strategic acquisition and ongoing investments, Cloudnine is positioning itself for robust growth in the competitive healthcare landscape.
Original Source: https://www.livemint.com/news/temasek-cloudnine-ivf-treatment-chain-art-fertility-400-mn-investment-acquisition-healthcare-expansion-superspecialty-11748603305938.html
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Publish Date: 2025-05-31 05:40:00
