Pathology and radiology provider Sonic Healthcare is continuing to expand in Europe, acquiring Swiss medical laboratory group Medisupport in a cash-and-shares deal worth a total of 327.5 million Swiss francs ($AUD455.3 million).
Medisupport has operations in 10 Swiss cities and employs more than 700 people.
Sonic will pay 277 million Swiss francs in cash, and at least 3.56 million shares for the Swiss company.
The cash component will be funded from Sonic’s existing debt facilities.
Sonic expects the takeover to lift its earnings per share by around eight per cent initially.
Sonic chief executive Colin Goldschmidt said Sonic’s further expansion in the Swiss laboratory market would help it strengthen its position in Europe.
“Together with our already-strong Zurich-based operations, Sonic moves into the clear number one position in the Swiss laboratory market, providing an excellent platform for future growth and service enhancement,” Dr Goldschmidt said on Monday.
Medisupport operates one of Switzerland’s largest genetics and sequencing laboratories.
“Medisupport will add value to Sonic’s capabilities in this burgeoning field of medicine, including the in-house development of genetic tests,” Sonic said.
Shares in Sonic were 45 cents higher at $20.58 at 1127 AEST.