With its shares down 25% in the last three months, shareholders of IVF specialist Virtus Health Ltd (ASX: VRT) finally had something to smile about yesterday.

Its shares jumped almost 3% after the company announced that it has acquired the Aagaard Fertility Clinic in Aarhus, Denmark. The company will pay DKK85 million ($16.5 million) on a cash free/debt free basis.

This values the clinic at approximately 7x normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) and pleasingly management expects it to be accretive to earnings in FY 2017.

CEO Sue Channon had this to say in the deal:

“Scandinavia is an attractive market for Virtus, with a number of operational and regulatory similarities with Australia, including a good legislative framework for Assisted Reproductive Services. The Aagaard clinic is another example of where we will be able to leverage our leading minds, leading science philosophy for the benefit of patients, professional development of our team and ultimately shareholder return.”

This will be the third international market that Virtus Health has entered in the last few years and not the last it would seem. Management revealed that it continues to seek value accretive expansion opportunities in Europe and Asia to add to existing operations in Ireland and Singapore.

Whilst I’m pleased to see the company expand further, I think it is too early to say whether this acquisition will be a success.

At this point in time Virtus Health’s international operations are not exactly a huge selling point in my opinion. After all, Ireland operates on significantly lower margins than the domestic business and Singapore is still loss-making.

So for now I continue to believe arch rival Monash IVF Group Ltd (ASX: MVF) is the better option in the industry for investors. At 15x full year earnings and expected to provide a fully franked 4.8% dividend in FY 2017, now could be a great time to pick up shares.

As well as Monash IVF, I believe these hot stocks could be about to soar. The smart money is on them being big winners next year. Is yours?

Why These 3 Blue Chip Shares Are Set to Soar for Smart Investors

Discover The Motley Fool's Top 3 blue chips for Smart Investors. These 3 'new breed' shares pay fully franked dividends AND offer the prospect of significant capital appreciation. Simply click here to gain access to this comprehensive FREE investment report.

No credit card required!

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.