Diagnostic imaging provider Capitol Health (ASX:CAJ) has acquired 6 clinics in Perth and 3 in Melbourne.
The healthcare company paid $17 million upfront on a cash and debt free basis with up to $3.3 million payable under earn-out to vendors over the first year of ownership.
Capitol says the new clinics are expected to contribute $16.5 million in revenue and $3.1 million in earnings per annum.
The acquisitions will enable Capitol’s entry into the attractive Perth market while the 3 Victorian clinics will extend the Capitol network into metropolitan Melbourne.
Shares in Capitol Health (ASX:CAJ) are trading up 1.59 per cent to 32 cents.