Integral Diagnostics Announces Regarding the Acquisition of Specialist Radiology Group

Integral Diagnostics Limited announced the acquisition of Specialist Radiology Group, Trinity MRI and Cavendish Radiology in Auckland, New Zealand.

The three businesses combined:

  • Comprise the leading specialist radiology clinics in Auckland
  • Employ and contract several of the nation’s leading specialists in musculoskeletal radiology and neuroradiology
  • Have a projected EBITDA contribution of NZ$13m to NZ$14m (A$12m to A$13m1 ) for FY19
  • A high growth business with strong margins
  • Provides a premier platform for Integral Diagnostics to enter and grow in New Zealand

The key terms of the deal include:

  • A purchase consideration of NZ$105m (A$97.65m1 ) on a cash and debt free basis, comprising NZ$80m (A$74.4m1 ) in cash and NZ$25m (A$23.25m1 ) in IDX equity
  • 80% of the equity will be held in escrow for up to 5 years
  • A five year staged earn-out for vendor radiologists based on earnings outperformance

The acquisition is expected to be completed in July 2018, subject to satisfaction of customary conditions

This strategic acquisition includes four clinics, employing 14 radiologists who work in both the public and private sector. The clinics are market leaders in providing complex modalities including MRI, CT and SPECT (nuclear medicine), which are high margin services positioned to experience significant future growth. The clinics are fitted with a state of the art and modern modality fleet.

Dr Ian Kadish, MD and CEO of Integral Diagnostics, said “We are proud to incorporate these four leading specialist radiology clinics into Integral Diagnostics. The group’s radiologists and staff represent a strong strategic and cultural fit with IDX’s doctor led operating model. Joining the New Zealand clinics with our Australian business will create a significant, best-in-class diagnostic imaging platform in a collegiate trans-Tasman partnership. The clinics have a demonstrated track record of achieving strong revenue growth at market-leading profitability and add significant value to IDX. We extend a very warm welcome to the New Zealand doctors and staff and look forward to partnering with them to further grow our combined business.”

Dr Quentin Reeves and Dr Maurice Moriarty said “We are extremely pleased to be partnering with Integral Diagnostics who we consider to be the leading provider of specialist radiology services in Australia. Together we will be able to realise multiple synergies across our practices and further enhance and expand our services for patients in New Zealand.”


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