Capitol Health completes acquisition of 9 new clinics

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by Anna Napoli

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Last Updated: 17/02/2020 10:47 AM

Diagnostic imaging provider Capitol Health (ASX:CAJ) has completed the acquisition of 9 new clinics.

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 company says the acquisitions are another step in the businesses existing growth strategy with clinics expected to contribute strongly to the full year 2019 result.

Shares in Capitol Health (ASX:CAJ) are trading 3.57 per cent lower to 27 cents.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.