Australia's Capitol Health Ltd. said it agreed to acquire West Coast Radiology for A$5 million up front on a cash-free and debt-free basis.

The deal includes a performance-based payout of up to an additional A$300,000.

West Coast Radiology comprises two clinics in Eaton and Busselton, Western Australia. The clinics provide general diagnostic and interventional services. Post-transaction, Capitol Health's network in Western Australia will expand to eight clinics.

Capitol Health expects West Coast Radiology to generate A$4.2 million in annual revenue, based on a fiscal 2019 forecast.

The transaction is expected to complete in the second quarter of fiscal 2019, subject to standard conditions. Capitol Health will use its existing cash reserves and facilities to fund the acquisition.

Capitol Health, which operates diagnostic imaging facilities, has acquired several clinics since its bid to acquire competitor Integral Diagnostics Ltd. lapsed earlier this year.