UK-based teleradiology firm Medica has acquired Global Diagnostics Ireland from the private Irish healthcare group Centric Health for an initial cash consideration of €16 million (£14.5 million).
Medica acquired its Irish counterpart on a cash-free and debt-free basis in a move that the business said would “expand its customer base” and help diversify into ophthalmology, where Global Diagnostics Ireland has a 50% market share for the provision of diabetic retinopathy screening services on behalf of the Irish health service.
Dr Stuart Quin, chief executive of Medica Group, said in a statement: “This highly complementary acquisition of Global Diagnostics Ireland aligns with, and significantly accelerates, our strategy to diversify Medica’s geographic reach, service offering and customer base, while being strongly accretive to earnings.
Caroline Byrne, who will join the Medica executive team as managing director, Ireland, commented: “We are excited to join forces with Medica and think it will benefit all our stakeholders. Ireland’s teleradiology market is attractive and evolving at a pace whereby we will benefit from the processes, systems and clinical governance expertise that Medica brings. In addition to the strong business rationale for both parties, we also see a close cultural fit between our two organisations and we look forward to continuing to develop the Company for the benefit of our clients and their patients.”
GDI, based in Balally, Dublin was established in 2007 to operate diagnostic managed services, including teleradiology reporting services to support the successful growth of Centric Health’s primary care business.
The company now operates at over 50 clinical sites within Ireland, employing a team of over 140 people nationwide working alongside more than 20 Irish Medical Council certified specialist radiologists.
The Irish radiology services market represents over €500 million of spend and demand for radiology is increasing at around 8% per annum.
For the financial year ended 30 June 2019, GDI reported revenues1 of €7.4 million, an increase of 16% on the prior year, adjusted EBITDA of €1.5 million and profit before tax of €1.2 million.
Alpha Helix Corporate Finance, the UK healthcare-focused advisors led by Gordon Hamilton, worked on behalf of Medica Group as exclusive buy-side corporate finance advisors on the deal.
Date published: November 4, 2020