Healius (ASX:HLS) share price higher on acquisition and rebrand news

This healthcare company’s shares have started the week strongly…

| More on:
happy person clenching fists in celebration sitting at computer

Image source: Getty Images

The Healius Ltd (ASX: HLS) share price is on the move on Monday morning.

In early trade, the leading healthcare company’s shares are up 1% to $4.69.

This leaves the Healius share price trading within a whisker of a multi-year high.

Why is the Healius share price rising?

Investors have been bidding the Healius share price higher on Monday after it announced a new acquisition and rebranding.

According to the release, Healius has acquired Axis Diagnostic for an undisclosed fee. Management notes that Axis is a high-quality Queensland-based imaging business with operating earnings (EBITDA) of approximately $2 million.

It comprises three radiology practices located in growth areas near Brisbane and one practice in the Whitsundays.

Healius’ Managing Director & CEO, Dr Malcolm Parmenter, commented: “The acquisition is in line with our business’ network optimisation strategy, has been funded from cash and is EPS accretive. It complements and extends our existing footprint, grows revenue and capabilities, and delivers synergies with our facilities and national contracts.”

Rebrand

In addition to the acquisition, Healius has announced that its diagnostic imaging division, Healthcare Imaging Services and all its sub-brands, will be rebranding as Lumus Imaging. This will unify its imaging businesses under one national brand.

The release explains that the rebrand, with a new logo and colour scheme aligned to Healius, will see a stronger customer focus, improvements to the business’ online presence, and delivery of a more modern service.

Dr Malcolm Parmenter said: “Rebranding to Lumus Imaging supports Healius’ aim to be a customer centric healthcare business. In addition to refreshing our brand identity, we are updating our services, focusing on our digital capabilities and enhancing the way our business interacts with its patients and referrers.”

The rebrand will begin with seven sites across NSW and the ACT transitioning to Lumus Imaging in August. After which, the remaining sites across the country are expected to be completed over the next 18 months.

The Healius share price is up 24% in 2021.

Should you invest $1,000 in Healius right now?

Before you consider Healius, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Healius wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers