By Stuart Condie

SYDNEY--Sonic Healthcare acquired Utah-based medical-tech provider Pathology Watch for US$150 million in what the Australian company called a strategic move that would accelerate its transition to digital pathology services.

Sonic on Thursday said that it would fund the acquisition from existing cash reserves and debt. Pathology Watch is currently at the pre-profit stage, but Sonic expects attractive earnings-per-share and return-on-invested-capital accretion over coming years.

Sonic added that Pathology Watch's founders, management and staff of Pathology Watch will join the ASX-listed company's U.S. and global operations. The deal is expected to close in December 2023.

"The acquisition of Pathology Watch is an important and enormously exciting step in Sonic's transition to digital pathology and pathology AI and offers multiple avenues for value creation," Sonic Chief Executive Colin Goldschmidt said.

The transaction is not material, Sonic said.

Write to Stuart Condie at

(END) Dow Jones Newswires

11-15-23 1742ET