Medica Group – a very clever bit of Irish?
The UK market leader in providing teleradiology services Medica Group (LON:MGP) recently announced a very shrewd acquisition.
It is paying an initial £14.5m to acquire Global Diagnostics Ireland, which is the teleradiology services market leader in Ireland. It is a debt-free acquisition that will be immediately earnings enhancing – just the right type of deal to do in these markets.
Prior to the announcement the group’s shares had fallen back to 98p, however on the next day the news was good enough to jack them up 9% to 107p.
The deal, which has tremendous rationale, expands the group’s service offering into ophthalmology. It will now have a 50% market share in the provision of diabetic retinopathy screening services on behalf of the Irish Health Service.
It was good to see that both the CEO and the CFO directors bought more shares in the group after the deal announcement, paying up to 109.5p for their additional shares.
The shares are now trading at around 116p. They will be going a lot higher yet if Gresham House Strategic has its way.
(Profile 07.01.20 @155p set a Target Price of 215p)
(Profile 29.10.20 @ 106p set a Target Price of 138p)