Diagnostic imaging facility operator Capitol Health Ltd (ASX: CAJ) today announced it would acquire 9 independent radiology clinics from four vendors across Western Australia for $17 million upfront and $3.3 million payable over the first year of ownership.
The move comes after Capitol Health provided a market update earlier this month, indicating its EBITDA earnings guidance of between $23 million and $25 million was on track.
Capitol Health has also introduced a doctor equity incentive scheme, with the issue of unlisted options over ordinary Capitol Health shares at a 10% premium to the 30-trading-day volume.
Capitol has indicated more acquisitions are on the cards, with the strategy clearly focused on asset growth as it works to expand itself in the competitive healthcare space.
Elsewhere in the sector today all eyes are on global hospital group Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC), with its share price down almost 30% in the last 12-months after slowing growth has forced the company to rethink its strategy.
Healthscope Ltd (ASX: HSO) shares are down slightly today to $2.19 today as it remains a takeover target.