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- Virtus Health (VRT) enters a share sale deal with Healius (HLS) to acquire its Adora Fertility and three day hospitals for $45 million
- The healthcare company says the Adora businesses will support its existing portfolio of clinics and day hospitals across Australia
- Virtus will fund the acquisition through a $35 million institutional placement which will issue more than 5.1 million shares at $6.80 per share
- The issue price represents a 5.4 per cent discount to the last traded price of $7.19 on August 20
- Virtus Health is currently in a trading halt but expects to resume trading on August 24
Virtus Health (VRT) is set to acquire Adora Fertility and three day hospitals, collectively the “Adora businesses”.
The assisted reproductive services (ARS) provider entered a share sale agreement with healthcare stock, Healius (HLS), to acquire its Adora businesses.
The Adora clinics have a demonstrated track record of achieving growth and are fitted with modern equipment.
According to Virtus Health, these businesses will support its four ARS clinics and three day hospitals across Australia.
VRT Group CEO Kate Munnings commented on the acquisition.
“This acquisition supports our ambition to increase consumer choice by offering diverse models of care across new locations,” she said. “It also takes our day hospital network to ten facilities and represents our entry into Western Australia.”
Virtus Health will acquire the Adora businesses for $45 million and will fund this through an institutional placement.
The placement will raise around $35 million through the issue of 5.147 million shares at $6.80 per share. The issue price represents a 5.4 per cent discount to the last traded price of $7.19 on August 20.
The new shares are expected to settle on August 26 and commence trading on the following day.
In addition to the acquisition and placement, Virtus Health released its financial results for the 2021 financial year.
The company saw a 25.4 per cent increase in revenue from $258.9 million in FY20 to $324.6 million in FY21. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 102.2 per cent to $93.4 million.
Virtus Health is currently in a trading halt but expects to resume trading on August 24.
