Abu Dhabi’s M42 buys Sweden's Diaverum to become largest Middle East healthcare provider

Abu Dhabi tech-enabled healthcare company M42 has acquired Sweden’s dialysis provider Diaverum, a leading global renal care service provider, from Bridgepoint Group, in a move that makes it the largest healthcare company in the Middle East.

“M42’s acquisition of Diaverum represents a major milestone in our global expansion strategy,” Hasan Al Nowais, group chief executive and managing director of M42, said on Wednesday.

“Diaverum is an exceptional company providing vital treatments that enable patients suffering from chronic kidney disease to live fulfilling lives.”

The value of the deal was not disclosed. The new business will be the largest in the Middle East in terms of earnings before interest, taxes, depreciation and armotisation (ebitda).

M42 was established earlier this week after the coming together of G42 Healthcare and Mubadala Health.

The acquisition of Diaverum expands M42’s global geographic footprint, enabling it to introduce relevant healthcare services and HealthTech solutions in new markets while boosting its renal care offering in the GCC.

Diaverum is the world’s third-largest provider of dialysis services, operating 440 clinics across 23 countries and employing more than 13,000 people.

Diaverum chief executive Dimitris Moulavasilis said M42 was a “perfect fit” for his company’s future, with the transaction expected to strengthen its position as a leader in renal care.

“Together, we’ll be able to drive international growth and continue transforming the industry through patient-centric digital innovations,” he said.

The acquisition comes at a time when Abu Dhabi is charting a path to become a global healthcare industry centre.

Mubadala is at the forefront of the UAE's healthcare industry, investing in new ventures and forging partnerships to enhance the country's biopharmaceutical manufacturing capabilities.

In January, Mubadala Investment Company, Abu Dhabi’s sovereign investment arm, acquired Dental Care Alliance, a US support organisation for about 390 allied practices across 22 American states.

In August last year, Mubadala-backed G42 set up a $10 billion fund to invest in emerging technology in high-growth regions around the globe as it looks to expand its investment portfolio.

In October, Mubadala Health and G42 Healthcare signed an agreement to boost collaboration and find innovative solutions to treat chronic diseases.

Demand for digital healthcare services continues to grow.

The global digital health market is projected to grow by 22.6 per cent to $407.72 billion in 2023, from $332.53 billion in 2022, and hit $1.7 trillion by 2032 at a compound annual growth rate of about 20 per cent, according to Precedence Research.

M42 will use its knowledge and expertise in artificial intelligence, genomics and tech-powered solutions to advance Diaverum’s ability to deliver precise, life-saving renal care, Mubadala said.

"Its pioneering digital care offering fully aligns with M42’s focus on leveraging advanced technological solutions to deliver precise, personalised patient care,” Mr Al Nowais said.

The newly created entity aims to provide personalised, precise and preventive care while considering international expansion opportunities and new partnerships.

It will, in tandem, focus on collaborating with leading researchers and health technology ecosystems.

The company will manage a wide portfolio of assets, including Amana Healthcare, Biogenix Labs, Danat Al Emarat, HealthPoint Hospital, the HealthPlus network of speciality centres, Moorfields Eye Hospital Abu Dhabi, Imperial College London Diabetes Centre, Insights Research Organisation & Solutions, the Omics Centre of Excellence and the National Reference Laboratory.