Sonic Healthcare acquires Pathology Watch for $200m

The news: Sonic Healthcare, one of the world's largest anatomical pathology providers, will acquire US-based medical technology company Pathology Watch.

The numbers: The purchase price of USD130 million ($200 million) will be funded in USD from Sonic's existing cash and debt facilities. Pathology Watch is currently at pre-profit stage, but Sonic expects to achieve attractive earnings per share and return over coming years.

The context: Sonic Healthcare has practices in Australia, the US, Switzerland and Germany and annual revenues from anatomical pathology of about $1 billion. The transaction is expected to close in early 2024 subject to regulatory approvals.