SYDNEY: Australian healthcare company Healius Limited said Friday it has entered a binding agreement to sell its wholly owned subsidiary Agilex Biolabs Pty Ltd to a subsidiary of Novotech Health Holdings Pte Ltd for an enterprise value of A$160 million.

The transaction represents a multiple of 19.8 times Agilex Biolabs’ FY2026 EBITDA on a pre-AASB16 basis, Healius said in a statement to the Australian Securities Exchange.

Healius expects cash proceeds of approximately A$155 million after separation and transaction costs, and said it does not anticipate incurring any tax liability from the sale.

Completion is subject to customary conditions, including approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission. Healius expects the deal to close in the second half of fiscal 2027.

Healius said it began exploring a sale of Agilex Biolabs in May 2026 after receiving several unsolicited approaches from credible parties. The company determined that a disposal at a sufficiently attractive price would unlock shareholder value and allow management to focus on growing its core pathology business.

Agilex Biolabs operates as a standalone business under Healius, and the sale will not affect Healius Pathology operations, the company said. Upon completion, Healius will be in a net cash position. The company said it will assess its capital requirements and provide further details on its plans for the sale proceeds closer to completion.

“The sale of Agilex Biolabs delivers attractive value for Healius shareholders,” said Paul Anderson, Healius’ managing director and CEO. “The sale provides customers and team members of Agilex Biolabs with the opportunity to join an established and global business in Novotech, which has expertise in providing services to major biotechnology and pharmaceutical customers.”

Anderson added that Healius will continue to execute strategies to grow and improve its core pathology business, which provides diagnostic services to millions of Australians annually.

Novotech CEO Dr. Anand Tharmaratnam said Agilex has built an outstanding scientific reputation over many years.

“This acquisition bolsters Novotech’s expertise in Australia, bringing together leading bioanalytical science and research capabilities to deliver innovative and ground-breaking research,” Tharmaratnam said. “We look forward to welcoming the Agilex team.”

Novotech is a clinical research organization providing services across the drug development value chain, running trials across all phases and sizes. The company has served more than 1,000 customers since 2021 and employs approximately 2,850 people across 39 offices in Asia-Pacific, North America and Europe. Novotech is majority controlled by private investment funds affiliated with TPG.

UBS Securities Australia Limited is acting as financial adviser to Healius, and Mallesons is acting as legal adviser.

Healius, which has operated for more than 30 years, provides specialty pathology services across Australia through its network of centers and more than 8,000 employees.