NIB to acquire specialist corporate private health insurer GU Health

NIB Holdings limited (ASX: NHF) today announced that it has entered into an agreement to acquire specialist corporate private health insurer GU Health for a total consideration of $155.5 million.

GU Health is Australia’s only established specialist corporate group health insurer, servicing over 34,000 policyholders across more than 260 corporate clients. The business has operated as a wholly owned subsidiary of Australian Unity Limited since 2005.

GU Health generated premium revenue of $193.5 million in the 12 months ended 30 June 2017. The $155.5 million1 purchase price implies an acquisition multiple of approximately 15.0x FY18E adjusted pro forma NPAT pre-synergies.

The acquisition multiple should reduce as a result of expected benefits from future capital efficiencies. The acquisition is expected to be immediately EPS accretive2. EPS accretion is expected to be over 3% in the first full year of ownership excluding any future capital release and before fully phased long-run synergies. Annual synergies are expected to be in excess of $3 million once fully integrated.

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