16th Aug 2019 10:45
(Alliance News) - Healthcare advisory group Cello Health PLC said Friday it will acquire Innovative Science Solutions for up to USD10.5 million.
ISS is a scientific consulting firm focused on providing strategic counsel and regulatory support for the healthcare industry in the US.
Cello Health will make an initial payment of USD6.4 million which will be funded from the company's cash and debt facilities. In addition, a deferred consideration of a maximum of USD4.1 million will be payable in four tranches, depending on ISS' financial performance over the period from August 1, 2019, to July 31, 2024.
For 2018, ISS recorded a pretax profit of USD2.8 million, on USD5.0 million revenue.
The acquisition of ISS is expected to help Cello Health expand further in the US, and add a new component to the group's offering of technical services concerning drug development pathways.
"We are excited about the acquisition of ISS at this stage in our US evolution. ISS has built a strong reputation for provision of its scientific consulting services. Adding this technical offer will benefit our clients, particularly by tackling their biggest challenges in navigating critical scientific, commercial, and regulatory pathways to successful commercialisation," said US Chief Executive Officer Julia Ralston.
Shares in Cello Health were up 1.1% at 129.40 pence on Friday.
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