Monash IVF Group Ltd (ASX: MVF) has announced an acquisition to the market to grow its profit.
Monash IVF is one of the leading assisted reproduction service businesses in Australia, it also provides a service for imaging and diagnostic services. The company achieved the first IVF pregnancy in the world in 1973.
Monash IVF’s Acquisition
Monash IVF has acquired Fertility Solutions in Queensland for an initial $2.1 million with further potential additional earn out payments over the four years to 30 June 2023. The acquisition is expected to be funded by the company’s cashflow.
The company was established in 2007 with two clinics in Bundaberg and on the Sunshine Coast. The business has six fertility specialists who have worked together for several years in the Monash IVF clinician network.
Fertility Solutions performs over 300 stimulated cycles a year with revenue of around $3 million and is expected to add to profit immediately in FY20.
The idea behind the acquisition is that it opens up in two regions that it currently doesn’t service.
The Monash IVF share price has suffered over the past three years as low cost competition grows. So unless the company can offer additional services, I’m not sure how attractive it is at today’s share price.
The growth shares in the free report below could be much more exciting ideas to think about.
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