Optima Health PLC (AIM:OPT) has made a 'well-priced' move to expand its mental health offering with the acquisition of Care first from Priory Group, adding both scale and capability in a strategically important area.
That's according to broker Panmure Liberum, which reiterated a ‘buy’ rating and 212p price target on the stock.
It said the acquisition adheres to Optima's disciplined buy-and-build strategy, giving the group immediate access to 1,000 new customers and significant cross-selling opportunities.
The £350,000 cash deal, with a net cost of just £15,000, is expected to complete on 2 June and brings around £3.7 million in annual revenue.
Care first provides mental health and Employee Assistance Programme services, along with specialist helplines, whistleblowing lines and bespoke research, expanding Optima’s capabilities in fast-growing parts of the occupational health market.
The acquisition also brings in 40 permanent staff and a 700-strong associate network.
Panmure expects Optima to publish a year-end trading update shortly, with estimates to be revised at that stage.
The deal is seen as another example of Optima executing on its targeted expansion strategy while maintaining a tight grip on value.
The shares were up 1.5% at 190p.