Integral Diagnostics (ASX: IDX) snaps up Exact Radiology; how will it benefit IDX?

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Integral Diagnostics (ASX: IDX) snaps up Exact Radiology; how will it benefit IDX?

IDX acquires Exact Radiology
Image source: © Alexmillos | Megapixl.com

Highlights:

  • IDX will finalise the acquisition of Exact Radiology in early FY23
  • The acquisition includes an open purchase consideration of AU$37.5M in cash
  • IDX gets growth prospects in South-East Queensland

Medical imaging services provider Integral Diagnostics Limited (ASX: IDX) is set for business expansion in South-East Queensland through an acquisition. The company has signed an agreement for the acquisition of Exact Radiology, which is based in Brisbane, Ipswich, and surrounding areas. The acquisition, which is expected to be completed in early FY23, includes an open purchase consideration of AU$37.5 million in cash, on a cash and debt-free basis.

IDX is a leading provider of medical imaging services across Australia and New Zealand spanning 67 radiology clinics, including 27 comprehensive sites. The company ensures quality patient care by employing some of Australia’s top radiologist and diagnostic imaging experts.

You may read: What should investors know about Medical Imaging prospects in Australia?

How will the acquisition benefit IDX?

The acquisition will be beneficial to IDX due to the following reasons:

  • Exact Radiology provides comprehensive radiology services at 11 clinics and has one partial MRI license in metropolitan MM1
  • It registered solid financial metrics, including earnings accretive in the first year
  • It delivers a projected FY22 pro forma EBITDA of AU$5.25 million
  • The acquisition will add six new radiologists to the IDX group

The acquisition is expected to have an earn-out of nearly AU$1.875 million to be completed within FY22, subject to revenue performance targets being achieved

Do read: Osteopore (ASX: OSX) deepens its footprint in Australia with MAXONIQ deal

Image source: © 2022 Kalkine Media®

Similarly, team members from Exact Radiology Group stated that its doctors are excited to join the Integral Diagnostics group with its strong footprint in Southern Queensland and that IDX has the broad expertise and clinical services to assist the growth of Exact Radiology.

Stock information: Stocks of IDX were trading at AU$3.650, with a gain of 0.550% at 12:47 PM AEST on 11 May 2022.

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