Medical diagnostic imaging services provider Capitol Health (ASX:CAJ) has expanded its New South Wales radiology presence with the acquisition of Eastern Radiology Services and Sydney Radiology.
The acquisitions, which are immediately EPS accretive, have a combined enterprise value of $30 million as well as combined FY2014 revenue of $13 million and EBITDA of $3.75 million.
These also have the capacity to extend trading hours, drive synergies and manage workflow by integrating into the existing New South Wales network.
Eastern, located in Bondi Junction, is a substantial operation that has had two MRI licences allocated to it in the Federal government MRI Expansion Program.
Sydney is a boutique operation located in Cremorne that offers Capitol opportunities to expand and market high value services to Sydney’s north shore.
Separately, the company has started commissioning a clinical facility in Broken Hill and will look to add further clinics to its network.
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