Australian pathology services company Sonic Healthcare has agreed to acquire German laboratory chain Diagnosticum for a total consideration of €190m.

Established in 1990, Diagnosticum is a large-scale clinical and anatomical pathology laboratory group that operates in southeast Germany.

The Australian company, which employs 25 pathologists and operates 15 laboratories across its regional geography, is expected to generate revenue of around €65m  in FY2024.

As part of the acquisition, all the partners and a senior team at Diagnosticum will be transferred to Sonic and will be operated as part of the federation of Sonic laboratories in Germany.

The transaction is expected to be completed by the end of this year, subject to customary closing conditions, including medical regulatory approvals.

Sonic CEO Colin Goldschmidt said: “We are delighted that the pathologists and staff of Diagnosticum will join Sonic Healthcare’s expanding German and global team and I take the opportunity to warmly welcome these new colleagues to our company.

“Diagnosticum’s reputation and expertise will complement and add substantial value to Sonic Healthcare and we look forward to working with our new colleagues to further strengthen and propagate our Medical Leadership culture, in the interest of our clinicians and their patients.”

Sonic is a provider of medical diagnostic services, including specialised pathology, and clinical and radiology services to clinicians, hospitals, community health services, and their patients.

The company intends to fund the acquisition from existing cash and debt facilities, with most of the purchase price being tax deductible in Germany over 15 years as goodwill amortisation.

In November last year, medical diagnostics provider Sonic Healthcare agreed to invest $17.8m to acquire a 19.99% stake in Microba Life Sciences.

They have also signed a partnership agreement to deliver Microba’s microbiome testing technology to Australia, New Zealand, Germany, the UK, Belgium, Switzerland, and the US.

Microba is a precision microbiome company that develops novel therapeutics for major chronic diseases and gut microbiome testing services for researchers, clinicians, and consumers.