LifeHealthcare Group (ASX:LHC) has entered into an agreement to...

LifeHealthcare Group (ASX:LHC) has entered into an agreement to acquire Medical Vision Australia Cardiology & Thoracic Pty Limited (MVA) for $9 million.

It will be immediately EPS accretive given that MVA’s revenue for the 12 months to 30th June 2015 was $5.8 million. Opportunities exist for further growth through market development and market share gain.   

There is also an earn-out payment of up to $4 million based on MVA’ financial performance in the 18 month period ending on 31st December 2016.

Subject to completion, the acquisition will extend LifeHealthcare’s existing presence in the Interventional Cardiology sector.

This includes a broader range of Percutaneous Cardiac Intervention (PCI) products providing both diagnostic and treatment options.

The PCI market in Australia is estimated to be approximately $100 million in size and growing in the mid-single digit range.

LifeHealthcare had revenue of $99.3 million in FY2015, up 13.8% from the previous year, and a 14% increase in EBITDA to $17.4 million.

It had $6 million in cash as at 30th June 2015.

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