Canadian healthcare company Centric Health has entered into an agreement to acquire Medical Imaging Centres and certain business assets of Rads 24/7 Teleradiology Consultants.
Medical Imaging Centres is a provider of diagnostic imaging and interpretation services in Ontario.
The deal, expected to close next month, involves a payment of $15m in cash and the issuance of up to $24.2m in Centric Health common shares at a price of $2.50 or 90% of the five-day volume weighted average share price immediately prior to the closing date, whichever is higher.
In addition, an outperformance payment of up to a maximum of $7.6m may be payable in cash or common shares.
Centric Health will also acquire seven additional diagnostic imaging licenses in Ontario which are anticipated to become operational within the next 12 months.
The total consideration to be paid on closing for the dormant licences comprises $6m in cash and the issuance of up to $12m in Centric Health common shares at the issue price.