Optima Health (AIM: OPT) shares fell 4.8% on Monday after the company confirmed it has agreed to acquire PAM Healthcare Limited for approximately 100 million.
The transaction is conditional only on receiving clearance from the Irish Foreign Direct Investment regime. Financing for the purchase will consist of 0 million of new debt facilities provided by HSBC and Barclays, together with a 0 million bridge facility from Deacon Street Partners Limited, an entity controlled by substantial shareholder Lord Ashcroft.
Optima has said it plans to repay the bridge facility by launching an underwritten open offer for 5 million at 175 pence per share. That price represents a 17.8% discount to the closing price on February 13. The company said the open offer will be issued after the acquisition completes.
Management projects the acquisition will be accretive to adjusted earnings per share after the first full financial year following completion, and that accretion will rise to more than 25% by the end of the third year. Optima also disclosed that, on a combined unaudited proforma basis and before accounting for synergies, underlying adjusted EBITDA would exceed 26 million.
"This transformational acquisition underscores our intent in delivering our stated strategic objectives and cements Optima 's position in its attractive and growing market," said Jonathan Thomas, Chief Executive Officer of Optima Health.
PAM, which was founded in 2004, reported unaudited revenue of about 6.6 million for the year ended December 31, 2025, and an adjusted EBITDA of .2 million. The company provides services to more than 1,500 organisations and supports in excess of 1.5 million employees.
Following completion, Optima said the combined business will hold a proforma market share of 15%, positioning it as the clear market leader and accelerating progress toward its stated goal of capturing a 25% market share. The company expects revenue and cost efficiency synergies to rise to in excess of million per year once integration is complete.
The market reaction to the announcement was negative in the short term, with the company's shares declining on the day the transaction was revealed. The structure of the financing - combining bank debt with a short-term bridge from a shareholder-related vehicle and a discounted underwritten equity offer to follow - will be a focal point for investors as the deal moves through the regulatory clearance process and into execution.