Monash IVF (ASX:MVF) widens clinical footprint, snaps up PIVET Medical Centre

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Monash IVF (ASX:MVF) widens clinical footprint, snaps up PIVET Medical Centre

MVF provides assisted reproductive technologies
Image source: © Subbotina | Megapixl.com

Highlights

  • Monash has inked a binding sale agreement to acquire PIVET Medical Centre, a fertility services provider based in Perth
  • PIVET’s IVF Program resulted in Australia’s first IVF baby being born in 1982
  • An attractive growth opportunity for Monash IVF, the acquisition marks its entry into a new domestic IVF market.

Monash IVF Group Limited (ASX: MVF), a leading provider of assisted reproductive services, is set to expand its geographic diversification through a strategically attractive acquisition. The company has entered a binding sale agreement to acquire PIVET Medical Centre, a fertility services provider based in Perth.

Triggered by the development, shares of MVF shot up 4% to trade at AU$1.097 in Wednesday’s morning session.

The acquisition is expected to complete during Q1 FY2023, subject to certain precedent conditions. Monash will pay an initial up-front cash consideration of AU$9.4 million on a debt-free basis for the acquisition.

PIVET, which was initially established in Western Australia, was founded by Professor John Yovich, widely recognised for his pioneering work in in-vitro fertilisation (IVF). Remarkably, he was the one behind Western Australia’s first IVF baby, born in 1982 through the PIVET IVF Program. In 2009, Pivet was expanded to Cairns, Queensland, where Cairns Fertility Centre was established.

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Significance of the acquisition

  • Monash will add nine fertility specialists to its clinician network
  • The acquisition is expected to increase Net Profit after Tax (NPAT) by 4% as PIVET secures revenue of around AU$8 million per year
  • Monash will get entry into a new domestic IVF market, ensuring business growth
  • Additionally, the Cairns Fertility Centre business compliments Monash IVF’s existing IVF clinics in Northern Queensland
  • PIVET is expected to grow because of persistent exceptional patient experience, technology & infrastructure investment, and the attraction of new fertility specialists

Image source: © 2022 Kalkine Media®

Monash IVF Group’s Chief Executive Officer & Managing Director, Michael Knaap commented:
PIVET is a quality organisation with a proud pioneering history, which provides an excellent geographic and cultural fit with Monash IVF. Monash IVF currently has no presence in the attractive Perth market, and the acquisition provides further geographic diversification for Monash IVF as we continue to increase our clinical footprint across Australia and Southeast Asia.”

Also read: What are the challenges facing Australia’s medical workforce crisis?

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