Teleradiology services provider Medica Group has acquired Global Diagnostics Ireland (GDI), the market leader for teleradiology services in Ireland, for an initial cash consideration of €16 million (£14.5 million).
As a result of the transaction, it aims to:
- Diversify Medica’s customer base and geographical operations with Ireland’s market leader in teleradiology services
- Expand service offering into ophthalmology with a 50% market share for the provision of diabetic retinopathy screening services on behalf of the Irish health service
- Brings a strong management team and network of expert doctors
- Expected to be strongly earnings enhancing and return on invested capital expected to be approximately twice the cost of capital
Caroline Byrne, who will join the Medica executive team as managing director, Ireland, said: “We are excited to join forces with Medica and think it will benefit all our stakeholders. Ireland’s teleradiology market is attractive and evolving at a pace whereby we will benefit from the processes, systems and clinical governance expertise that Medica brings. In addition to the strong business rationale for both parties, we also see a close cultural fit between our two organisations and we look forward to continuing to develop the company for the benefit of our clients and their patients.”
The acquisition is in line with Medica’s strategy to diversify revenue sources outside of the UK, and expand into new areas of telemedicine.
Dr. Stuart Quin, CEO of Medica Group said: “This highly complementary acquisition of Global Diagnostics Ireland aligns with, and significantly accelerates, our strategy to diversify Medica’s geographic reach, service offering and customer base, while being strongly accretive to earnings.
“We have been evaluating the Irish market for teleradiology for the past year and in GDI we have found an ideal partner that shares our focus to provide the highest quality radiology services. GDI has built a strong reputation amongst radiologists, as well as hospital and primary care clients across Ireland. Additionally, in partnership with leading ophthalmologists in Ireland, they have built a strong reputation in the delivery of diabetic retinopathy screening services which cover 50% of the Irish market. Medica will support Caroline and the management team to continue to grow and develop the business, as well as invest to deliver a broader range of services.”
