The Infratil Limited (ASX: IFT) share price is one to watch today after an acquisition update from the Kiwi infrastructure group.
Why is the Infratil share price in focus?
In its update, Infratil advised it will acquire between 50.1% and 60.1% of Pacific Radiology Group Limited (Pacific Radiology).
Pacific Radiology is a New Zealand-based comprehensive diagnostic imaging business with 46 clinics across the South Island and lower North Island, including more than 90 radiologists.
The Infratil share price will be one to watch as investors react to the latest acquisition news. The Pacific Radiology acquisition is conditional on counterparty consents to change of control in a "small number" of material contracts.
Infratil currently expects the acquisition to complete by 31 May 2021. The acquisition enterprise value of NZ$867 million implies an EV/EBITDA multiple of 12.6 to 13.3 times EBITDA.
What did management say?
Infratil CEO Jason Boyes said the Pacific Radiology acquisition would sit well with Infratil's other "high performing, high-quality assets", and built on its investment last year in Qscan Group, a leading diagnostic imaging business in Australia.
The purchase also confirms our continuing confidence in the New Zealand market and the thematics which are driving our capital allocation in communications and digital infrastructure, decarbonisation and aging populations.
We also see this as an opportunity to scale Infratil's investment in Qscan Group and create a meaningful Australasian healthcare platform with potential synergies and adjacent opportunities.
Foolish takeaway
All eyes will be on the Infratil share price especially after slumping 2.4% lower in yesterday's trade. The latest purchase adds to the group's 2020 acquisition of Qscan.
Infratil announced that transaction's completion on 22 December 2020. The Kiwi infrastructure group used A$289.6 million to purchase the 56.25% stake.
The Infratil share price is one to watch in early trade after the Kiwi infrastructure group's latest acquisition announcement.
