One of the top provider of assisted generative services & specialist in women’s imaging, as well as, diagnostic services in Malaysia and Australia, Monash IVF Group made an announcement regarding the acquisition of Fertility Solutions, which is a Queensland-based provider of fertility service, that has two clinics situated in Bundaberg and Buderim (i.e. on the Sunshine Coast). This acquisition is in line with the firm’s long-term priority of creating a more balanced business portfolio across Australia.
According to the announcement made by the firm on the 11th of July it was confirmed that the company will be acquiring some certain assets, liabilities, as well as, contracts of Fertility solutions for an amount valued at $2.1 million on a debt-free basis with the potential of surplus earn-out payments over a period of four years to 30th June 2023. The initial price of purchase & following earn-out payments will be funded through the cash flow of the firm.
With more than 300 stimulated cycles per annum & revenues of circa $3M, this acquisition is a source of great value for the firm. In addition to this, the acquisition is expanding the firm’s existing Queensland presence by the addition of two additional clinics in the Sunshine Coast & Bundaberg, the regions which are not at present served by the Monash.
It is projected that this acquisition will be earnings accretive in FY2020. The acquisition is expected to be completed in the first quarter of Financial Year 2020, subject to certain conditions precedent.
With regards to the firm’s strategic performance, it can also be stated that Monash IVF Group has a track record of a solid performance against the 5-year Stimulated Cycle industry Compound annual growth rate of 1.7 percent however, Financial Year 18 and 1H19 has been impacted by the departure of a Specialist.