Business
Acquisition
Acquisition.
About this update from Batm Advanced Communications Ltd.
[{"type":"text","content":"\n \nRNS Number : 0513W BATM Advanced Communications Ld 06 February 2017 \n\n6 February 2017\n \nBATM Advanced Communications Limited\n(\"BATM\" or \"the Group\")\n \nBATM Acquires Zer Laboratories Ltd\n \nBATM Advanced Communications Limited (LSE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, is pleased to announce that it has entered into an agreement (the \"Agreement\") to purchase the entire issued share capital of Zer Laboratories Ltd. (\"Zer Laboratories\") for a consideration of NIS 2.75 million (approx. £580,000) payable in cash (the \"Acquisition\").\n \nOverview of Zer Laboratories\nZer Laboratories, headquartered in Tel Aviv, Israel and established in 1976, is the largest private diagnostic laboratory in Israel for clinical tests, mainly providing prenatal screening tests for Down's Syndrome, genetic tests and additional tests performed during IVF and fertility treatments. \n \nZer Laboratories unaudited revenues for full year 2015 amounted to $2.4 million and profit before tax was $27,000. The Acquisition is expected to be earnings accretive in the financial year ending 31 December 2017.\n \nRationale for the Acquisition\nThe Acquisition is in line with the Group's stated strategy of becoming a prominent participant in the diagnostics markets in which it operates. The primary reasons for the Acquisition are:\n \n· Synergies with BATM's existing offering of non-invasive prenatal tests (NIPT) using Panorama, the NIPT of Natera, which determines the chance that a pregnancy has certain chromosomal abnormalities; Natera is a NASDAQ-listed company offering proprietary bioinformatic solutions that enable laboratories worldwide to expand their test offerings; Natera granted distribution rights to BATM in Israel and Romania.\n· Capture the growth market in NIPT in Israel and markets in Europe where BATM has a significant presence;\n· BATM's genetic laboratory, including sequencing machine that conducts genetic tests, is currently going through a certification process to carry out Panorama in Romania, which management expects to expand to Israel and offer this test through Zer Laboratories; \n· BATM intends to use Ze...