Integral Diagnostics - Capitol Health

Summary

Integral Diagnostics Limited (Integral Diagnostics) is proposing to acquire Capitol Health Limited (Capitol Health) (the Proposed Acquisition). Integral Diagnostics (ASX: IDX) and Capitol Health (ASX: CAJ) are both listed on the Australian Stock Exchange, and each operate radiology (or “diagnostic imaging”) businesses in Australia.

The merging parties supply general diagnostic imaging, magnetic resonance imaging (MRI), and nuclear medicine services (together radiology services) at clinics across Australia, but only overlap in Victoria and Western Australia. The ACCC’s investigation is likely to focus on these areas of local overlap.

In Victoria, Integral Diagnostics has 21 sites which it operates under the brands ‘Lake Imaging’ and the ‘X-Ray Group’. Capitol Health has 46 sites in Victoria which it operates under the brand names ‘Capital Radiology’, ‘Imaging @ Olympic Park’, ‘Direct Radiology’, ‘Future Medical Imaging Group’ and ‘Lime Avenue Radiology’.

In Western Australia, Integral Diagnostics has 6 sites which it operates under the brand ‘Apex Radiology’, and Capitol Health has 8 sites which it operates under the ‘Capital Radiology’ brand.

The Proposed Acquisition has been structured as a scheme of arrangement. Post-acquisition, it is anticipated that existing Integral Diagnostics shareholders would own approximately 63% of the merged entity, with the balance being held by existing Capitol Health shareholders.

Market inquiries

Submissions are invited from interested parties regarding the Proposed Acquisition by 5pm AEST on 19 September 2024. 

Submissions should be forwarded electronically (preferably in PDF format) to mergers@accc.gov.au with the title: “Submission re: Integral Diagnostics/Capitol Health”. 

For more details, please refer to the Market Inquiries Letter published below. 

Following 19 September 2024, queries regarding the ACCC’s review may also be addressed to mergers@accc.gov.au.