Independent Practitioner Network Ltd today completed the $32 million acquisition of Fremantle-based medical services company Gemini Administration Services Pty Ltd.
Gemini is a medical administrative services provider with its main operations in Western Australia and smaller operations in Queensland, Tasmania and Victoria.
The group provides services to over 100 doctors and operates from over 35 clinic locations.
Sydney-based IPN expects the Gemini business to contribute between $27 million and $29 million in revenue in FY09, and expects the FY09 EBITDA contribution to be between $4.7 million and $5 million.
The transaction has been funded by a $32.5 million limited-recourse loan with IPN's parent company, Sonic
The Gemini group operates three key businesses:
Gemini operates 10 stand-alone medical centres in a similar model to IPN's medical centre model. A number of the centres are new centres in outer metropolitan Perth or regional Western Australia where strong population growth has occurred, and the revenues of these centres remain in a strong growth phase.
Mining Sites & Rural Locations
Gemini has successfully entered into over 25 contracts to facilitate the provision of medical services at mine sites and rural towns, where the local mine operator or council agrees to supply facilities and funding for the centre in exchange for Gemini operating the practice. Gemini has experienced recent success in winning tenders for mine site operations and expects to continue this strong growth activity under IPN's ownership.
Occupational Health Services
Gemini's occupational health Division provides services to corporate clients who require medical services for their staff. Clients such as BHP and Newcrest Mining use Gemini's services for pre-employment medicals or annual health assessments .Services are booked and managed through Gemini's central administration facility and serviced in part by Gemini's medical centres, along with a network of external centres.
IPN's Managing Director, Malcolm Parmenter said: "Gemini have built not only a strong network of medical centres to add to IPN's network, but they have also created very strong systems and a high quality reputation in their Occupational Health business. We see that by combining Gemini's Occupational Health business with IPN's national network of centres, we will create a national network of occupational health services not offered by any other provider. This is a very large growth area in the provision of medical services, and a combined IPN/Gemini service offering will be very attractive to numerous large companies and government bodies seeking coordinated medical services for their employees."