Omega Hospitals, which is backed by Morgan Stanley Private Equity, has acquired Cytecare Hospitals, a cancer care hospital based in Bengaluru. The acquisition marks Omega’s entry into the North Bengaluru micro-market.
Cytecare Hospitals, established in 2016, is a 150-bed NABH-accredited oncology centre located on the international airport road in North Bengaluru. The hospital has built its presence in oncology through clinical services, patient-focused care, and research.
Commenting on the acquisition, Dr Mohana Vamsy, Managing Director of Omega Hospitals, said, “This acquisition is a significant milestone for Omega, providing an entry in an important geography we want to focus outside our core geographies of AP & Telangana. Over the last 2 years we have been working on creating pan-India centres of excellence and our recent foray in Jabalpur, Surat, Vijaywada, Tirupati and now Bangalore is part of the same expansion strategy. We hope to deliver on our commitment to provide advanced and high-quality care for cancer patients.”
Prateek Bhurat, Executive Director at Morgan Stanley Private Equity, added, “We have been in touch with Dr Ferzaan and team for the past year and very pleased that the deal has concluded. We recognise that Cytecare is strategically located, has good clinical talent and has tremendous potential for future growth. This unit will be developed as Omega’s centre of excellence for quaternary cancer care with investment earmarked for top clinical talent and high-end medical equipment.”
Dr Ferzaan Engineer, Co-Founder and Chairman of Cytecare Hospitals, said, “My cofounders, Suresh Ramu (CEO) and Himanshu Shah (Director) and I are delighted with this transition of Cytecare to the next level of technology-led growth and patient-centric services under the leadership of Morgan Stanley backed Omega Hospitals. We are proud to have created a strong platform of clinical excellence, governance and research thanks to our exceptional clinicians, healthcare professionals, management teams, Board of Directors and investors. We are grateful to our 50,000 plus patients from over 25 countries for their trust and bless.”
Morgan Stanley Private Equity invested approximately ₹500 crore in Omega Hospitals in June 2024. Omega is expanding its cancer care network across India with recent entries into Jabalpur, Tirupati, Surat, Vijayawada and Yamuna Nagar. The network currently operates 14 hospitals with around 2,000 beds across five states. Omega has also strengthened its leadership by appointing Dr Vijay Vemuri, previously associated with AOI, as Executive Director.
Spark Capital Investment Banking advised Cytecare Hospitals on the transaction.