SYDNEY, AUSTRALIA: Microba Life Sciences Limited (ASX:MAP), a leading provider of microbiome testing services, has announced the acquisition of Invivo Clinical Limited (Invivo), a UK-based company that offers a range of microbiome testing and intervention products.
The deal is valued at approximately A$12.5 million, plus up to A$8.7 million in earn-out consideration, payable in both cash and shares.
To fund the acquisition, Microba is launching a 1-for-4 pro rata accelerated non-renounceable entitlement offer to raise up to A$20 million from existing shareholders.
The offer price is A$0.23 per share, representing a 25% increase in Microba’s issued capital.
Microba’s Chair Pasquale Rombola and Deputy Chair Professor Ian Frazer said that the acquisition will strengthen Microba’s position in the UK market, which is a key target for its international expansion strategy.
They said that Invivo has a leadership position and a large customer base in the UK, and that its products are complementary to Microba’s technology.
Invivo reported revenue of A$8.9 million for FY23 from testing and intervention product sales, and has been operating cashflow positive with no external capital.
It has sold more than 20,000 microbiome tests since 2020, and has testing products for various body sites, such as the gut, vagina, mouth and urinary tract.
The acquisition is expected to be completed by the end of October 2023, subject to customary conditions. The lead managers to the entitlement offer are Bell Potter Securities Limited and Morgans Corporate Limited.