Medical pathology provider Sonic Healthcare (ASX:SHL)
is set to acquire Canberra Imaging Group in efforts to expand their imaging division footprint in the country.
The $17.5 billion provider said the acquisition “is a significant and positive step in the development of Sonic’s Imaging division in Australia, broadening its footprint, deepening its talent pool, increasing the revenue of the division by about 10 per cent, and offering potential opportunity for synergy benefits.”
The Canberra based imaging company raked in approximately $60 million in annual revenue with branches in Goulburn and Queanbeyan in New South Wales.
Settlement of the medical imaging specialist is expected in the first quarter of financial year 2022 with the spree to be funded through a mix of cash and debt with the purchase price to remain private. The company notes the return on capital invested is expected to exceed Sonic’s cost of capital in the first year.
Sonic Healthcare’s CEO, Dr Colin Goldschmidt said “Canberra Imaging Group is a highquality imaging practice, with outstanding radiologists, management and staff, and with a culture that is strongly aligned with Sonic’s Medical Leadership model. CIG has a proven track record in the greater Canberra market, with a history of strong organic growth based on personalised and excellent customer service. I am delighted to welcome warmly all CIG staff to the Sonic Healthcare group".
Shares in Sonic Healthcare (ASX:SHL)
are trading 0.05 per cent higher at $36.71.