Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com -- Shares of OPT climbed 1.5% after the company announced the acquisition of Cognate Health, which is expected to increase its revenue base by approximately 6.4% and adjusted EBITDA by around 5%.
The agreement, which highlights OPT's revenue growth and strategic geographic expansion, includes Cognate Health's revenue of roughly €7.87 million (£6.8 million) and EBITDA of about €1 million (£0.87 million).
The acquisition allows OPT to extend its reach to the Republic of Ireland with an additional 30 clinic sites and 60 employees, including 35 Occupational Health physicians.
This move presents cross-selling opportunities to an expanded client base and potential revenue synergies. Cognate Health's platform, which offers occupational health services focused on work-related illnesses and injuries, aligns well with OPT's services, promoting overall workplace health and safety.
Analysts view this expansion positively. "This is positive news for OPT, expanding its reach into a new geographic region, in line with its stated growth strategy. The acquisition price of an initial £6m plus an earnout of ~£1.7m or ~9x EBITDA in total is within the 5-10x EBITDA range we would typically expect for OPT's acquisitions," RBC analysts commented.
While at the higher end of this range, this acquisition takes OPT into a new region with a platform of ~30 clinic sites, they added.
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