The Directors of Paragon Care Limited (ASX: PGC) (“Paragon” or the “Company”) are pleased to announce the agreed acquisition of Electro Medical Group Pty Ltd (“EMG”), for a purchase consideration of $3.9 million in Paragon shares and cash.
Electro Medical Group specialises in providing reliable and high-quality service support and technology management to the Medical, Scientific, Aged Care and Allied Health industry of Australia and New Zealand. EMG has established agreements in place with a number of major healthcare providers throughout the region.
The acquisition allows Paragon to capitalise on the growing demand for the provision of preventative service and maintenance within the health & aged care sector. The initiative will look to generate significant sales synergies over coming years when combined with Paragon’s existing service and maintenance business. The transaction albeit not material in terms of additional sales and profit will be modestly EPS accretive in FY17.
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