- Sonic Healthcare (SHL) signs a binding agreement to take over Canberra Imaging Group (CIG)
- Sonic says the acquisition is a positive step in the development of its imaging division in Australia with revenue expected to increase by more than 10 per cent
- Settlement of the transaction is subject to customary conditions and will be funded from cash reserves or available debt lines
- The transaction is not considered to be material for Sonic, and settlement is scheduled for the first quarter of financial year 2022
- Shares are trading 0.5 per cent higher at $36.89 each at 1:16pm AEST
Sonic Healthcare (SHL) has signed a binding agreement to take over Canberra Imaging Group (CIG).
CIG is the leading radiology practice in Canberra, with branches also located in Goulburn and Queanbeyan in New South Wales.
The practice employs 15 radiologists and more than 200 other staff who will move over to the Sonic Healthcare group.
With ten service sites across nine locations, CIG operates one fully-funded, two partially-funded and two unlicensed MRI scanners, as well as one of two private PET CT scanners in Canberra. It’s said to be the only private operator of an angiography and interventional day suite in the area.
Sonic said the acquisition is a positive step in the development of its imaging division in Australia with the expectation that revenue will increase by more than 10 per cent.
Settlement of the transaction is subject to customary conditions and is set to be funded from cash reserves and/or available debt lines and will be immediately earnings per share accretive.
Further, the return on capital invested is expected to exceed Sonic’s cost of capital in the first year.
The transaction is not considered to be material for Sonic and settlement is scheduled for the first quarter of financial year 2022.
Sonic Healthcare’s CEO, Dr Colin Goldschmidt welcomed the CIG staff to the Sonic Healthcare Group.
“Canberra Imaging Group is a high quality imaging practice, with outstanding radiologists, management and staff, and with a culture that is strongly aligned with Sonic’s Medical Leadership mode”.
Shares were trading 0.5 per cent higher at $36.89 each at 1:16pm AEST.