Ascent Capital investing $14.7M in Skanray Technologies | VCCircle
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Ascent Capital investing $14.7M in Skanray Technologies 

BY  Lohit Jagwani
Skanray is planning to acquire companies in Europe and set up units in Brazil and West Asia.

Private equity firm Ascent Capital is investing up to Rs 100 crore ($14.75 million) in Mysore-based medical device company Skanray Technologies in various tranches, sources privy to the development told VCCircle.

Skanray, which manufactures radiology and critical care products, had acquired Larsen & Toubro’s (L&T)’s medical equipment business last year. The company had been in talks with various private equity players to raise funds for inorganic growth and acquire key targets in Europe as well as other global locations. It is also planning to set up units in Brazil and West Asia.

Email queries sent to spokespersons of both Ascent Capital and Skanray did not elicit any respond at the time of publishing this article.

Skanray is aiming to reach a top-line of Rs 300 crore by FY15, Vishwaprasad Alva, managing director of Skanray, had said in a report published earlier by Business Standard.

One of the personal investors in the company is Arun Kumar, promoter of public listed healthcare firm Strides Arcolab. According to the Business Standard report, Kumar was personally spearheading the fundraise and the firm is in talks with Ascent Capital. Kumar had reportedly invested close to Rs 25 crore in Skanray with commitment to put in more when required.

Ascent Capital manages $560 million across three funds—Ascent India Fund, Ascent India Fund III and ITVUS Fund, according to VCCEdge, the financial research platform of VCCircle. The PE player invests in education, healthcare, real estate, financial services and IT industries.

Early this year, Ascent Capital invested $3.68 million in rating and grading service company Credit Analysis Research Ltd and $12.03 million in Ratnakar Bank.

Medical device and equipment companies in India produce cheaper products and have strong distribution systems. They have started giving stiff competition to international companies in certain segments, including radiology and critical care. Some of these companies have seen high investor attention which has led to a number of PE players investing in them.

Some of the significant deals include medical instruments and imagining product manufacturer Trivitron Healthcare receiving $74.11 million from Fidelity Growth Partners; Sutures India, which manufactures surgical products, getting $20 million from TPG Capital and BPL Medical Technologies, which manufactures patient monitors, defibrillators and central nursing stations, receiving funding of $20 million from Goldman Sachs.

(Edited by Joby Puthuparampil Johnson)

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