Capitol Health acquires clinic in Victoria

Company News

by Kathy Skantzos

Diagnostic imaging healthcare company Capitol Health (ASX:CAJ) has announced it has acquired the I-Rad Radiology clinic in Sunshine, Victoria, and confirms speculation that it is the preferred bidder of a potential acquisition of Radiology Tasmania.

The company is purchasing the Victorian clinic for $3 million, with an additional $0.5 million payable under earn out over two years, based on revenue growth.

I-Rad is expected to contribute $3.7 million in annual revenue and $0.8 million in EBITDA.

The transaction is expected to be complete in January 2018.

Two of Capitol Health’s planned clinic openings for FY2018 in Melbourne are nearing completion, expected to be open early in January 2018.

Shares in Capitol Health (ASX:CAJ) last traded at $0.29.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.