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- Integral Diagnostics (IDX) is set to acquire The X-Ray Group based in Albury-Wodonga on the Victorian-New South Wales Border
- The X-Ray Group provides MRI, CT and nuclear medicine services and the acquisition will complement IDX’s regional footprint
- Consideration includes $37.5 million upfront as well as a deferred payment of up to $1 million
- IDX expects the acquisition to be completed in November, subject to satisfaction of customary conditions
- Shares have ended the day 4.02 per cent higher at $4.92
Integral Diagnostics (IDX) is set to acquire The X-Ray Group based in Albury-Wodonga on the Victorian-New South Wales Border.
IDX is a provider of medical imaging services across Australia and New Zealand.
The acquisition of the group, which provides MRI, CT and nuclear medicine services, would complement Integral’s existing regional footprint with leading radiology clinics in the twin-cities as well as three smaller community clinics in Wangaratta, Yarrawonga and Lavington.
Integral said The X-Ray Group employs three radiologists under long term employment arrangements including Dr James Mullins, a radiologist who has worked in the region for 25 years.
The group has a projected financial year 22 EBITDA contribution of between $5 and $5.5 million before any COVID-19 impacts.
Consideration for the deal will be funded by existing debt facilities and includes $37.5 million upfront on a cash and debt free basis, comprising $25.95 million cash and $11.5 million in IDX shares to be issued at $4.68 each, on completion of the acquisition.
Two non-vendor doctors have also been offered up to $375,000 in shares each under the same arrangements.
Terms of the deal also include a financial year 22 earn-out of up to $4 million and financial year 23 earn-out of up to $2.5 million, subject to EBITDA performance hurdles.
Additionally, a deferred consideration of up to $1 million will be payable on the third anniversary of completion of the transaction.
IDX expects completion to be in November, subject to satisfaction of customary conditions.
Shares were trading 4.02 per cent higher to close at $4.92 at market close.
