The company has acquired the Aagaard fertility clinic in Denmark. The company will pay a maximum consideration of $16.5m, including $10.8m at completion and a $5.6m earn out in cash and scrip.
Macquarie observes, with minimal geographical synergies and a history of anaemic organic growth in the country, this acquisition offers a relatively short-lived leg up in terms of group growth. Conditions remain tough, too, on the home front.
The broker retains a Neutral rating and raises the target to $6.70 from $6.50.
Sector: Health Care Equipment & Services.
Target price is $6.70.Current Price is $5.91. Difference: $0.79 – (brackets indicate current price is over target). If VRT meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).