Australian-based Integral Diagnostics (ASX: IDX) announced on June 10 that it acquired Ascot Radiology, expanding its network of diagnostic clinics.

The acquisition will create a new entity known as Integral Diagnostics New Zealand Radiology Group, which will have a total of 63 clinics between Australia and New Zealand. Integral paid roughly $31.2 million (NZ$47.7 million), with $24.9 million in cash and $6.2 million in new ordinary Integral shares to be issued at $2.28 per share to 17 specialist vendor doctors.

Integral Diagnostics provides diagnostic imaging services to general practitioners, medical specialists, and allied health professionals. The company provides its services through a network of clinics in Queensland, Victoria, and Western Australia, Australia; and Auckland, New Zealand.

Ascot Radiology comprises nine diagnostic imaging clinics, including key sites at Ascot Private Hospital in Auckland, and contracts with 22 private and public sector doctors specializing in oncology, gynecology, obstetrics, pediatrics, breast, chest, and musculoskeletal imaging.

The deal was funded partly by Integral’s cash reserves of $35.9 million and committed cash advance facilities, of which $49 million remains undrawn.

The acquisition of Ascot Radiology has been the largest deal in the Laboratories, MRI, and Dialysis sector this quarter (by price), with only eight deals on the books as of June 15, 2020, according to our Deal Search Online database. We could easily blame the pandemic but in the same period in 2019, there were only nine deals. Based on deal volume, it appears to be “business as usual.”