Australian Lab Group Expands in Europe

Sonic said the purchase price is based on an enterprise value of 190 million euros ($260 million). The acquisition will be immediately earnings per share accretive.

While other Australian healthcare companies are embroiled in a flurry of domestic takeover activity, Sonic has been chasing overseas opportunities, especially in North America and Europe.

Earlier this month, Sonic reached an agreement to buy out minority interests in its own German laboratory business. In July it agreed to buy U.S.-based Sunrise Medical Laboratories Inc. for up to US$168 million. The company also has operations in Australia, New Zealand, the United Kingdom and Switzerland.

"Bioscientia will add critical mass and enormous value to Sonic, as well as provide the potential for significant synergy within the German laboratory market," Sonic Managing Director Colin Goldschmidt said in a statement.

Sonic said Bioscientia runs 15 laboratories across Germany and several laboratories within hospitals. It employs over 1,000 staff and has annual revenues of around 125 million euros.