Cork-based occupational health services company Cognate Health has been acquired by UK group Optima Health for €9 million.
Optima Health, which provides technology to help people manage their health, said it had struck a deal to acquire the entire issued share capital of Cognate Health for a total consideration of up to €9 million on a cash free, debt free basis.
Cognate Health is owned equally by its founder and chief medical officer Prof John Gallagher, and its non-executive chairman Noel Creedon. Both men have addresses in Co Cork, filings with the Companies Registration Office show.
Optima Health will pay an initial €7 million on completion, in addition to an earn out of up to €2 million. The acquisition will be financed using the group’s existing financing facilities.
The earn-out will fall due following the first two anniversaries, subject to the achievement of certain agreed financial targest.
In the 12 months ended December 31st 2024, Cognate Health generated audited revenue of €7.4 million, a profit before tax of €860,000 and had net assets of €1.3 million.
Optima Health said the acquisition would expand its geographic reach, creating a base in the Republic with about 30 clinic sites across the country.
The deal would also expand its customer base and strengthen its ability to service multinational clients with operations in Britain and Ireland, it added. It brings additional clinical capabilities with almost 60 employees and a network of 35 occupational health physicians.
The group said there would be cross-selling opportunities, in addition to revenue synergies, and that the deal aligns with its strategic focus in the occupational health sector.
The Cognate platform provides occupational health services focused on preventing work-related illnesses and injuries, protecting workers from hazards, and promoting overall workplace health and safety.
“As Ireland’s leading occupational health provider, Cognate is focused on supporting and improving the wellbeing of the country’s workforce,” said Prof Gallagher.
“We are pleased to work with a company that shares our values as we move to the next phase of Cognate’s journey.”
Optima Health chief executive Jonathan Thomas said there are significant opportunities in the market for the company to accelerate growth, and that it would continue to evaluate bolt-on acquisitions.
“The acquisition of Cognate is a significant milestone for Optima, providing the company with access to a new geographic market,” he said.
