Mail.ru Group examines targets in telemedicine sector, sources says
23 APR 2019
Russia’s Mail.ru Group [LON:MAIL], which operates a range of Internet services, is examining potential targets in the telemedicine sector, a source close and a source familiar with the matter said.
The company, which reported RUB 75bn (USD 1.17bn) revenue in 2018, may use acquisitions to expand its operations in the sector, the source close said. It has been approached by several potential targets, and Mail.ru Group has conducted due diligence on some of them, he said, declining to give details.
Mail.ru Group is specifically interested in local telemedicine-sector players catering to patients with chronic diseases and children, as these are the only two market segments that would support viable business models, the source close said. The company may scale up operations at acquisition targets by supplying traffic from its other online business, which includes email platforms and social networks, both sources said .
The company, which reported RUB 75bn (USD 1.17bn) revenue in 2018, may use acquisitions to expand its operations in the sector, the source close said. It has been approached by several potential targets, and Mail.ru Group has conducted due diligence on some of them, he said, declining to give details.
Mail.ru Group is specifically interested in local telemedicine-sector players catering to patients with chronic diseases and children, as these are the only two market segments that would support viable business models, the source close said. The company may scale up operations at acquisition targets by supplying traffic from its other online business, which includes email platforms and social networks, both sources said .
The source close declined to disclose the size of Mail.ru’s war chest, methods of financing the future deals and possible targets sizes.
There are more than 30 companies providing telemedicine services in Russia, the source close said, which is expected to narrow to several large players in the next two or three years as a result of consolidation. The local telemedicine market grew to RUB 3bn (USD 45m) in 2018, from RUB 1bn in 2017, local media report.
Founded in 1998, Moscow-headquartered Mail.ru Group employs more than 5,000. Its shareholders include South African media group Naspers [JSE:NPN] (28%), Russian mobile operator Megafon [MCX:MFON] (10%) and Chinese investment holding Tencent[HKG:0700] (7%), while 50% of shares are in free float.
Mail.ru Group declined to comment. Naspers, Megafon and Tencent did not return requests for comment.
Founded in 1998, Moscow-headquartered Mail.ru Group employs more than 5,000. Its shareholders include South African media group Naspers [JSE:NPN] (28%), Russian mobile operator Megafon [MCX:MFON] (10%) and Chinese investment holding Tencent[HKG:0700] (7%), while 50% of shares are in free float.
Mail.ru Group declined to comment. Naspers, Megafon and Tencent did not return requests for comment.