Sonic Healthcare is acquiring US pathology services firm Aurora Diagnostics in a $A750 million ($US540 million) deal it says will create one of the largest pathologist groups in the world.
Sonic says the acquisition of Aurora, which employs about 220 pathologists and has 32 practices processing approximately 2.5 million accessions per year, will transform its US business.
Sonic will fund the deal through a $A600 million fully underwritten institutional placement and a $A100 million share purchase plan for retail investors.
Chief executive Colin Goldschmidt called the acquisition a seminal step for Sonic.
‘The integration of these practices into Sonic’s existing US operations, in conjunction with Aurora’s management team, will offer Sonic Healthcare USA the scale and critical mass to boost the national promotion of Sonic’s unique Medical Leadership model in the US laboratory and pathology markets,’ Dr Goldschmidt said.
The combined company will have more than 900 pathologists worldwide.