ByteDance forays into healthcare with $1.5B Amcare Healthcare acquisition

By Sakina Raj  | Date: 2022-08-10

ByteDance forays into healthcare with $1.5B Amcare Healthcare acquisition

ByteDance Ltd., a Chinese internet technology company, has recently acquired one of China's biggest private hospital chains for nearly $1.5 billion, for strengthening its entry into the health care segment with one of the most significant domestic tech deals since the crackdown on Beijing's internet.

ByteDance, which is TikTok's parent company, has paid around $147.9 billion (¥ 10 billion) for the complete ownership of Amcare Healthcare, a private hospital group that operates in Chinese cities from Beijing to Shenzhen.

According to corporate registry tracker Qichacha, two of the ByteDance subsidiaries will now own a mutual 100% stake in Amcare.

Notably, social media giant, known for creating addictive content apps, is following its fellow tech behemoths like Amazon and Apple, in exploring different ways to transform the traditional healthcare industry.

It is imperative to mention that this deal is one of the significant deals that emerged from the Chinese tech sector since regulators started restricting "disorderly capital expansion" by 2020 end . This led to the forbidding of all sorts of expensive acquisitions that Tencent Holdings Ltd. and Alibaba Group Holding Ltd. employed earlier.

Sources have also revealed that the healthcare app of ByteDance, Xiaohe, competes with Ping An Healthcare and Technology Co. and Alibaba Health Information Technology Ltd. in online consultations, wellness services and hospital visits. These services are part of the burgeoning $89 billion sector amplified by nationwide measures taken to curb the COVID-19 outbreak.

For the unversed, Amcare Healthcare, founded in 2006, operates around seven women's and children's hospitals, five postpartum centers and two integrated clinics across China.

Earlier in 2020, this healthcare frontrunner received government license for IVF (in-vitro fertilization) through a Beijing hospital acquisition.

Reportedly, prior to this acquisition, its major investors included China Renaissance, Hillhouse Capital, and Warburg Pincus.

The representatives of Amcare declined to comment on the speculated deal. However, Xiaohe confirmed the news but refrained from divulging any other details.

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Sakina Raj

Sakina Raj

Armed with a degree in English Literature, Sakina chose to explore the world of content writing and pursue it as a career. Sakina has been playing with words for over five years now and currently pens down articles relating to diverse domains for BonafideNews and vari...

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