Dr. Mazen Fakeeh, Chairman of the Board of Directors of Fakeeh Healthcare Group
Dr. Mazen Fakeeh, Chairman of the Board of Directors of Fakeeh Healthcare Group, said that the execution price of the acquisition of Safwat Diagnostic Medical Company reflects a discount ranging between 40% and 45% compared to the fair evaluation, as the group used an independent evaluator to determine the fair value of the share subject to the acquisition, and it was estimated as of September 30, 2025 within a range ranging between 114 and 125 million riyals and not based on historical profits.
Fakih added in an interview with: numbersThe deal, which amounted to 70 million riyals, was concluded at cost price and without profit for the seller, with protection clauses included in favor of “Faqih Healthcare” in the event that growth slows down beyond expectations.
He pointed out that Elite Diagnostics has a market share estimated at about 23% in the Kingdom and 6% in the Gulf, pointing out that revenue growth is mainly related to the expansion of long-term operating and management contracts, opening new sites, and increasing absorptive capacity, in addition to mobile imaging and remote reading services.
Fakih explained that the parent company (Safwat Diagnostic Medical) is recording profits and growing its business through teleradiology, while the subsidiary company specializing in operation and management (PIMC) is recording temporary losses due to building size and expansion.
He explained that the company is one of the most prominent providers of remote radiology services and operates radiology departments within hospitals and medical centers through its subsidiary, Premier Imaging Medical Centers (PIMC). It also provides radiation safety and mobile imaging services, and relies on an internally developed picture archiving and communication system (PACS) supported by artificial intelligence, which is the first Saudi product of its kind.
He stated that Safwat Diagnostics has a plan to expand to 16 operating and management (O&M) sites within the Kingdom, including 6 sites currently operating in Jeddah, Mecca, Medina, Khamis Mushait, and Yanbu, with a commitment to offering 10 additional sites.
He explained that this expansion, which includes investing in the infrastructure for diagnostic devices in these locations, will be financed through the use of more than 75% of the total proceeds previously contributed by the seller.
He added that the expansion also includes a strategic partnership with Al Nahdi Care to provide computed tomography (CT) and magnetic resonance (MRI) imaging services using modern devices and technologies, including artificial intelligence and smart communication applications, to ensure high diagnostic quality in accordance with international standards.
Regarding the financing structure, Fakih said that the deal is entirely financed from the company’s own resources and free cash flows, without relying on any bank facilities, indicating that the deal will not affect debt levels, and that the group is still in a net cash position.
Regarding the financial impact, Fakih explained that the impact will be limited in the near term due to operating and management expenses, but the contribution will gradually increase as additional sites come into operation in addition to the income from mobile photography and remote reading services.
He said: “We expect gradual growth and positive addition to margins over time, knowing that the margins of this activity are higher than the group’s average margins.”
He added that the deal gives the shareholders of the listed “Dr. Soliman Abdul Qader Fakeeh Hospital” company a majority stake in a developing company at a price less than its fair value, which enhances the opportunities for maximizing returns and raising profitability in the medium and long term, with the expectation that the evaluation of “Safwat Diagnostics” will contribute in the future to supporting the group’s financial results.