Optima Health Expands into Ireland with Cognate Health Acquisition
Why we think this is good
The acquisition of Cognate Health Limited is a positive strategic move for Optima Health, as it provides the company with a foothold in the Irish occupational health market and adds significant revenue and EBITDA to its operations. The transaction appears to be well-structured, with a reasonable purchase price and no apparent funding or dilution risks. While there are some integration and execution risks, the overall financial and strategic benefits outweigh the potential challenges.
Key Points
- Optima Health to acquire Cognate Health Limited for up to €9 million
- Acquisition adds c.€7 million revenue and €1 million EBITDA to Optima Health
- Provides Optima Health with a base in the Republic of Ireland with 60 employees and 35 licensed Occupational Physicians across 30 clinic sites
- Acquisition financed using Optima Health's existing financing facilities, no apparent funding or dilution risks
- Acquisition aligns with Optima Health's strategic focus on the occupational health sector
Summary
Optima Health, the UK's leading provider of occupational health and wellbeing services, has announced the acquisition of Cognate Health Limited, an occupational health services company based in the Republic of Ireland. The €9 million acquisition will add approximately €7 million in revenue and €1 million in EBITDA to Optima Health's operations, while also providing the company with a base in Ireland with around 60 experienced employees and a network of 35 licensed Occupational Physicians across 30 clinic sites. The transaction is expected to create cross-selling opportunities and revenue synergies for Optima Health.