Capitol Health and Integral Diagnostic’s Billion-Dollar Merger

Capitol Health Limited (CAJ) and Integral Diagnostics Limited (IDX), two leading providers of medical imaging services in Australia and New Zealand, recently achieved a significant milestone. Their successful merger, supported by Automic, has paved the way to create a $1 billion entity, marking a transformative moment for the radiography industry. 

This merger brings together approximately 10,000 shareholders, leveraging a unique combination of medical leadership and diagnostic expertise to enhance patient care across the region. 

Strategic Engagement for a Complex Shareholder Base 

Capitol Health faced the challenge of engaging a diverse and complex institutional share register, which included hedge funds, high-net-worth individuals, and international investors. Automic’s partnership played a critical role in overcoming these challenges, ensuring seamless communication and alignment with shareholders. 

The 8-week campaign was meticulously planned and executed by Automic’s dedicated team, which included campaign managers, call specialists, and analytics experts. By delivering tailored outreach and real-time reporting, Automic effectively supported Capitol’s engagement efforts. 

Key Highlights 

• Significant merger impact: The merger created a $1 billion entity, combining expertise from two leading diagnostic imaging providers. 

• Complex shareholder management: Automic handled the intricate institutional share register, including calls with hedge funds and arbitrage investors. 

• Real-time transparency: Daily reporting kept Capitol’s legal and financial advisors informed throughout the campaign. 

• Adaptable communication: Managed both inbound and outbound shareholder interactions, even during an extended ACCC review period. 

Outcomes 

Automic’s expert involvement led to a resounding success: 

• 99.92% of votes cast were in favour of the resolution. 

• Targeted campaigns improved shareholder engagement, meeting Scheme of Arrangement voting thresholds. 

• Capitol achieved shareholder alignment critical to advancing the merger process.