UK teleradiology company, Medica has announced the acquisition of Global Diagnostics Ireland (GDI), the market leader for teleradiology services in Ireland, for an initial cash consideration of €16 million (£14.5 million) from private Irish healthcare group, Centric Health.
WHY IT MATTERS
This acquisition is in line with Medica’s revised strategy announced in March this year to diversify revenue sources outside of the UK, to continue to further its market leadership position in teleradiology and expand into new areas of telemedicine.
It will also 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.
The acquisition also aims to strongly enhance earnings and return on invested capital expected to be approximately twice the cost of capital.
GDI is expected to bring with it a strong management team and network of expert doctors.
THE LARGER CONTEXT
Nines, a teleradiology and artificial intelligence startup, recently unveiled its AI imaging triage software platform alongside news of a $16.5 million Series A raise.
ON THE RECORD
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.”
Dr Stuart Quin, CEO of Medica Group said: “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.”