23rd Feb 2026 13:47
(Alliance News) - Novacyt SA on Monday said it has conditionally agreed to buy the entire issued share capital of Southern Cross Diagnostic Pty Ltd through its UK subsidiary to gain direct access to the Australian diagnostic market.
The Le Vésinet, France-based molecular diagnostic company said the initial cash consideration for the Sydney-based distributor of diagnostic products is AUD8.5 million, or approximately GBP4.4 million.
An additional consideration of AUD16.5 million, or about GBP8.6 million, will be paid over four years conditional on the achievement of yearly cumulative earning before interest, tax, depreciation and amortisation targets.
Novacyt has had a distribution agreement with Southern Cross since 2019, when one of its subsidiaries acquired Elucigene Diagnostics, whose tests Southern Cross distributed. Southern Cross reported sales of GBP6.7 million in financial 2025, up from GBP2.4 million in financial 2023.
According to Novacyt, the acquisition provides access to a market where it is seeing "strong growth through reimbursement", alongside access to strategic accounts and third-party products for distribution in the region. Southern Cross's accretive financial position will also "accelerate the breakeven position for the group", Novacyt said.
"Australia has always been a key market for us and has become even more important due to the uptake of our cystic fibrosis and DPYD assays [a gene test] to meet clinical market need. It is a good example of strong growth in a clinical diagnostics market based on changes in the reimbursement landscape. We look forward to continuing to support our customer base in this region," Novacyt Chief Executive Lyn Rees said.
Nick Thliveris, founder of Southern Cross Distribution, added: "This is an exciting next step for SCD, we have worked with the Novacyt Group for many years developing the market for their genetics products. We are excited about the prospect of working with our new partner to further develop our growth in the Australia and adjacent markets."
Novacyt shares were up 0.4% to 34.22 pence each on Monday afternoon in London.
By Martin Miraglia, Alliance News reporter
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