Virtus Health Acquires A Majority Stake In Irish IVF Provider, SIMS IVF (Video Announcement Included)

Virtus Health (“Virtus”, ASX: VRT) is pleased to announce it has acquired a 70% interest in Ireland’s largest IVF provider, SIMS IVF for €15.49 million (cash free/debt free basis).

SIMS IVF is a pioneer in the delivery of IVF services in Ireland and undertakes approximately 25% of Ireland’s IVF services from its state-of-the-art facility in Dublin.

For the 12 months to 31 December 2013, SIMS IVF generated revenue and maintainable EBITDA of €12.44 million and €2.85 million respectively.

SIMS IVF and Virtus will share their world-leading IVF technologies and explore opportunities to add value to patient services with the expectation of generating synergies over the longer term.

The existing SIMS IVF management team will continue to manage the business on a day-to-day basis and will work with the Virtus team to grow the business further. Dr Anthony Walsh will continue as Chairman and co-founder, Dr David Walsh, will remain in his current role as Medical Director.

Virtus has an option to acquire the remaining shares in SIMS IVF in two tranches in 2017 and 2019.

The acquisition is in line with Virtus’ growth strategy communicated at the time of IPO and provides a platform for future international expansion.

The acquisition will be funded from cash and existing bank facilities and, for the year to 31 December 2013, SIMS maintainable earnings would have increased Virtus' normalised basic earnings per share by approximately 1.98 cents per share assuming an exchange rate of €0.67 per AUD1.00.

Virtus’ CEO Sue Channon said “Ireland is an attractive market for Virtus, with a number of operational and regulatory similarities with Australia, including a legislative framework for Assisted Reproductive Services.

“This partnership brings together two of the world’s leading IVF providers to deliver specialist fertility care to those seeking to have a child.  We are excited to welcome the dedicated, leading fertility specialists and staff of SIMS IVF to the Virtus family.

“Virtus will continue to seek value accretive opportunities to expand our network with leading IVF businesses in our target regions of Europe and Asia.  These opportunities complement the organic growth that we’re seeing through our existing fertility clinics, day hospitals and diagnostic services.”

SIMS IVF Chairman and co-founder Dr Anthony Walsh said he was delighted the company was partnering with Virtus.

“SIMS IVF and Virtus share a lot of common values.  The foundations of both organisations are built on providing the best possible treatment and care for those trying to have a baby and create the family they desire,” he said.

“Before agreeing to become a Virtus partner, we undertook our own due diligence and determined that this partnership provided the best possible outcome for our patients and the SIMS IVF team.”

Listen to this Announcement by Sue Channon


Further information on the acquisition is contained in the presentation lodged with the ASX today.

Contact details

Sue Channon, CEO or Glenn Powers, CFO Virtus Health:  +61 2 9425 1722
Kyahn Williamson, Investor Relations Virtus Health, Buchan Consulting  0401 018 828

About SIMS IVF

SIMS IVF was founded in 1997 by Dr Anthony Walsh and was joined in the practice by Dr David Walsh the following year. It has grown to become Ireland’s leading provider of IVF services. The company is based in Dublin in a state-of-the-art facility and has 60 staff.

SIMS IVF performed over 1000 IVF cycles in 2013. It has an IVF clinical pregnancy rate of 39% on average across all age groups in 2013, higher than the average for Ireland of 32% and the European Union average of 33 % and UK average of 34%.

About Virtus Health

Virtus Health Limited (ASX: VRT) brings together leading fertility specialists, scientists, researchers and support staff to provide the very best in fertility care and related services. Virtus provides patients with a model of healthcare that integrates high quality patient care with an extensive range of Assisted Reproductive Services, specialised diagnostics and day hospital services.

Virtus has developed one of the most successful medical collaborations in the world. With more than 80 of the world’s leading fertility specialists supported by over 800 professional staff Virtus is the largest network and provider of fertility services in Australia and responsible for approximately 4,000 couples and single women each year achieving their dream of conceiving and having a baby.