LONDON: Halma Plc, a global group of life-saving technology companies, has announced acquisitions of NovaBone Products, LLC and FireMate Software Pty. Ltd. for its Medical and Infrastructure Safety sectors, respectively.

Halma acquired NovaBone Products, LLC, a designer and manufacturer of US FDA-approved synthetic bone graft products, based in Florida, USA.

NovaBone’s products are used to accelerate bone regeneration, primarily for orthopaedic and dental surgical procedures in the USA. It will become part of Halma’s Medical sector, which includes a range of diagnostic and surgical device companies serving niche applications in global healthcare markets.

The initial cash consideration for NovaBone is US$97 million (£74 million3), on a cash and debt free basis, which will be funded from Halma’s existing facilities. Additional earn-out considerations are payable in cash, dependent on profit growth in each of the two financial years to March 2022, up to an aggregate maximum of US$40 million (£31 million), with a maximum of US$25 million (£19 million) achievable in any single financial year.

NovaBone’s revenue and Adjusted EBIT for the twelve months ended December 2019 are forecast to be US$21.0 million (£16.0 million) and US$6.9 million (£5.3 million), respectively.

Halma acquired 70 percent of FireMate Software Pty. Ltd., a Brisbane, Australia-based company which provides cloud-based fire protection maintenance software to fire contractors.

The cash consideration for 70 percent of FireMate is payable in two tranches. An initial A$11.8 million (£6.2 million4) is payable at closing and a further A$6.4 million (£3.3 million) contingent on performance to 30 June 2022, resulting in a maximum A$18.2 million (£9.5 million), which will be funded from Halma’s existing facilities. Halma also has an option to purchase the remaining 30% of FireMate, exercisable in the six months from 31 March 2025.

FireMate’s revenue and EBIT in the twelve months ended June 2019 were A$2.5 million (£1.3 million) and A$0.9 million (£0.5 million), respectively.

Andrew Williams, Group Chief Executive at Halma, commented: “These businesses are exciting additions to Halma, bringing new technologies and market niches to two of our sectors and are highly aligned to our purpose. Both businesses are well positioned to benefit from the range of Halma’s strategic Growth Enablers and we look forward to working with their management teams to deliver further growth.

NovaBone extends our Medical sector’s presence in surgical applications, adding a new niche within the orthopedics market, which is growing fast due to the ageing population and increasingly sedentary lifestyles causing joint problems. It has strong technology and knowhow within the fast-growing biologics segment, developing biomaterials that harness the body’s natural healing process to accelerate bone growth.

FireMate’s software solutions are highly complementary to those currently offered by our Infrastructure Safety sector’s fire businesses and further strengthen our capabilities in connected and integrated fire systems internationally.”