Business
Acquisition of DUH
Acquisition of DUH.
About this update from Synectics Plc
[{"type":"text","content":"\n Synexus Clinical Research PLC\n06 June 2006\n\n\n\n Synexus Clinical Research PLC\n\n Acquisition of Diagnostic Units Hungary kft\n\n Acquisition allows Synexus to exploit growing opportunities in Central and\n Eastern Europe\n\n\nSynexus Clinical Research PLC (\"Synexus\" or \"Company\"), the clinical trials\nservices group, today announces the acquisition of the entire issued share\ncapital of Diagnostic Units Hungary kft (\"DUH\") for an initial consideration of\n€1.5 million plus a maximum deferred consideration of €1.25 million.\n\nThis acquisition, the Company's second since joining AIM in November 2005,\nfollows its stated strategy to build a multi-country operation, replicating\ntheir UK capability of recruiting large numbers of patients into later stage\nclinical trials for the pharmaceutical industry.\n\nInformation on DUH\n\nDUH is a Site Management Organisation based in Budapest, Hungary providing\nclinical trial services, particularly the recruitment and subsequent management\nof patients onto later stage clinical trials for the pharmaceutical industry. In\nthe twelve months to 31 December 2005, DUH reported unaudited turnover of\n£998,000 and profit after tax of £142,000. The value of the net assets acquired\nby the Company is £528,000.\n\nBenefits of the acquisition\n\n • DUH represents a further opportunity for the Company to exploit the\n growing opportunities for clinical trials and patient recruitment in\n emerging Central and Eastern European markets.\n • The acquisition of DUH, a well-established business operating in the\n same area of activity as Synexus, complements the organic growth of the\n Company.\n • The acquisition of DUH is expected to be earnings accretive for Synexus\n for the year to 31 March 2007.\n\n\nDetails of the acquisition\n\nThe maximum consideration of €2.75 million is satisfied as follows:\n\n • €1 million payable in cash on completion.\n • €0.5 million payable on completion by the issue of 362,976 new ordinary\n shares in Synexus at 95 pence per share. Application will be made as soon as\n practicable for these new ordinary shares to be admitted to trading on AIM.\n • €0.5 million deferred consideration payable in cash on the first\n anniversary of completion.\n • Up to a further €0.75 million payable in cash, dependent on the level of\n profit after...