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Integral Diagnostics (ASX:IDX) to acquire Horizon Energy in $27.4m deal

ASX News, Health Care
ASX:IDX      MCAP $678.4M
18 May 2022 17:25 (AEDT)

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Medical Imaging service provider Integral Diagnostics (IDX) is set to acquire Horizon Radiology — an Auckland based provider of obstetrics and musculoskeletal x-ray and ultrasound services.

IDX will pay $27.4 million upfront for full control of the company, plus an earn-out fee of up to $2.7 million over two years based on Horizon’s financial performance.

IDX said the purchase would deliver a projected FY22 Pro-forma EBITDA contribution of up to $3.6 million. However, this is excluding the adverse impacts of COVID-19.

Horizon Radiology operates 16 clinics in Auckland, eight of which are located close to major GP referrers.

The acquisition marks another step in Integral’s plans to expand into the New Zealand market. It’s the latest in a series of business acquisitions completed by IDX across both Australia and New Zealand.

In May, IDX agreed to purchase Queensland-based Exact Radiology for $37.5 million.

Integral Diagnostics Managing Director and CEO Ian Kadish said the company planned to keep expanding through future acquisitions.

The Horizon acquisition is expected to be completed in early FY23.

IDX shares closed down 0.27 per cent, trading at $3.68.

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