Optima Health agrees acquisition of Ireland-based Cognate
By Josh White
Date: Friday 11 Apr 2025
(Sharecast News) - Optima Health announced on Friday that it has agreed to acquire Cognate Health, a Republic of Ireland-based occupational health provider, for a total consideration of up to €9m.
The AIM-traded firm said the transaction - its first outside the UK - would be funded from existing financing facilities, structured with an initial payment of €7m plus an earn-out of up to €2m subject to performance targets over the next two years.
It said the acquisition would add about €7m in annual revenue and €1m in EBITDA to the group, based on Cognate's most recent audited figures.
In the year ended 31 December, Cognate recorded revenue of €7.37m and a profit before tax of €0.86m, with net assets of €1.28m at year-end.
The board said the deal would provide Optima with a strategic base in the Republic of Ireland, adding around 60 employees, a network of 35 licenced occupational physicians, and a footprint of 30 clinic sites.
It said it would enhance the group's ability to serve multinational clients across the UK and Ireland, and supports its strategy of expanding clinical capabilities and geographic reach.
Optima's board added that the transaction was consistent with its growth strategy, and that it was continuing to assess further bolt-on acquisition opportunities in the occupational health market.
"The acquisition of Cognate is a significant milestone for Optima, providing the company with access to a new geographic market," said chief executive officer Jonathan Thomas.
"Cognate's business is strategically aligned with ours, with a focus on occupational health services to improve health and wellbeing in the workplace.
"We look forward to integrating the businesses and benefiting from the significant additional clinical capabilities, and revenue synergies, as we continue to evaluate further value-enhancing bolt-on opportunities in the market."
At 1000 BST, shares in Optima Health were up 3.26% at 174p.
Reporting by Josh White for Sharecast.com.
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