Integral Diagnostics (ASX:IDX) to acquire NZ Horizon Radiology

Integral Diagnostics (ASX:IDX) has agreed to acquire NZ-based Horizon Radiology in order to expand its presence in the Auckland market.

The diagnostic imaging provider will acquire Horizon for an up-front consideration of $27.4 million ( NZD$30.3 million) in cash. The deal includes an earn-out of up to $2.7 million (NZ$3 million) over two years, subject to earnings outperformance.

The acquisition is expected to deliver FY22 pro forma EBITDA of $3.2 million to $3.6 million ($NZ3.5 million to $NZ4 million),and expected to be completed in early FY23.

“Horizon Radiology is a significant provider of GP-referred obstetrics and musculoskeletal x-ray and ultrasound services which strategically complement our existing offering,” said chief executive officer Dr Ian Kadish.

Separately, Integral also announced that the ACCC has approved its acquisition of Peloton Radiology.

Subject to satisfaction of the remaining outstanding conditions, the Peloton Radiology acquisition is also expected to be completed in early FY23.

Shares in Integral Diagnostics (ASX:IDX) are trading  0.5 per cent higher at $3.71.