22nd Mar 2021 18:00
(Alliance News) - Teleradiology services provider Medica Group PLC on Monday said it has agreed to acquire RadMD LLC, a imaging contract research firm, for up to USD21.7 million.
The acquisition is on a cash-free and debt-free basis. For 2020, RadMD achieved revenue of USD8.9 million, an increase of 20% on the prior year, and adjusted earnings before interest, tax, depreciation and amortization of USD1.2 million.
"In line with our strategy, Medica has been exploring ways in which we can harness our leading expertise in teleradiology to underpin diversification in other areas," said Medica Chief Executive Stuart Quin.
"We are pleased to deliver this with the acquisition of RadMD, which accelerates our ambition to provide radiological image reading for pharmaceutical and biotech companies. This acquisition provides entry into a new and exciting market for Medica with opportunities for growth and penetration of new geographies and customers," added Quin.
In a separate statement, Medica proposed a placing to raise GBP15.5 million before expenses through the issue of 10.7 million new shares at a price of 145 pence each.
Medica shares closed 1.7% higher in London on Monday at 152.50p each, giving it a market capitalisation of GBP169.7 million.
Alongside the placing, all of the directors of the AIM-listed company, Junaid Baiwa - who will be a non-executive director from April - and some members of the senior management team have agreed to subscribe for 383,444 new shares at the placing price, which amounts to subscription proceeds of GBP556,000.
Medica said it expects to raise total gross proceeds of GBP16 million. The proceeds of the fundraise will fund the initial cash consideration for the acquisition.
By Evelina Grecenko; [email protected]
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