LONDON: Optima Health (AIM: OPT), a UK provider of technology-enabled corporate health and wellbeing solutions, said on Monday it has agreed to acquire occupational health and wellness service provider PAM Healthcare Limited for approximately £100 million, in a move that cements its position as the market leader.
The acquisition, funded through a combination of new debt facilities and a bridge loan, is expected to be accretive to earnings and accelerate the group’s progress toward its medium-term revenue and profitability targets, the company said in a statement.
Optima will pay around £100 million on a debt-free, cash-free, normalised working capital basis. The deal is conditional only on clearance from the Irish Foreign Direct Investment regime, which is expected within 90 days.
Once completed, the transaction will mark an exit for UK private equity investor LDC, which backs PAM.
The acquisition combines two of the largest players in the UK and Irish occupational health market. Warrington-based PAM generated unaudited revenue of approximately £66.6 million in the year ended 31 December 2025, with a three-year compound annual growth rate of 15.7%. Its unaudited adjusted EBITDA for the same period stood at £8.2 million.
Optima said the combined pro forma underlying adjusted EBITDA would exceed £26 million before synergies, and the enlarged group would hold a 15% market share. The company anticipates annual revenue and cost synergies of over £5 million once fully integrated.
“This transformational acquisition underscores our intent in delivering our stated strategic objectives and cements Optima’s position in its attractive and growing market,” said Chief Executive Jonathan Thomas.
The £100 million consideration is being financed through £70 million in new committed secured debt facilities from existing banking partners HSBC and Barclays, alongside a £30 million unsecured short-term bridge facility from Deacon Street Partners Limited, an entity controlled by major shareholder Lord Ashcroft.
Optima intends to repay the bridge loan through an underwritten open offer to raise £35 million at 175 pence per share, a 17.8% discount to the closing price on Feb. 13. Deacon Street has committed to underwrite the offer, which will launch after completion and following consultation with the Takeover Panel.
Deacon Street will receive fees totalling £2.5 million plus VAT in relation to the bridge facility and underwriting commitment, classed as a related party transaction under AIM rules.
The UK and Ireland occupational health market is valued at approximately £1.6 billion and forecast to grow by up to 9% annually, Optima said, citing rising absenteeism costs, an ageing workforce and increased awareness of mental and physical wellbeing as growth drivers.
Optima has previously targeted £200 million in revenue and £40 million in adjusted EBITDA in the medium term, representing a 20% margin. The company said the acquisition was a “transformational step forward” in achieving these goals.
Completion is expected within 90 days, subject only to Irish FDI approval.