Synexus Clinical Research PLC
06 June 2006
Synexus Clinical Research PLC
Acquisition of Diagnostic Units Hungary kft
Acquisition allows Synexus to exploit growing opportunities in Central and
Eastern Europe
Synexus Clinical Research PLC ("Synexus" or "Company"), the clinical trials
services group, today announces the acquisition of the entire issued share
capital of Diagnostic Units Hungary kft ("DUH") for an initial consideration of
€1.5 million plus a maximum deferred consideration of €1.25 million.
This acquisition, the Company's second since joining AIM in November 2005,
follows its stated strategy to build a multi-country operation, replicating
their UK capability of recruiting large numbers of patients into later stage
clinical trials for the pharmaceutical industry.
Information on DUH
DUH is a Site Management Organisation based in Budapest, Hungary providing
clinical trial services, particularly the recruitment and subsequent management
of patients onto later stage clinical trials for the pharmaceutical industry. In
the twelve months to 31 December 2005, DUH reported unaudited turnover of
£998,000 and profit after tax of £142,000. The value of the net assets acquired
by the Company is £528,000.
Benefits of the acquisition
• DUH represents a further opportunity for the Company to exploit the
growing opportunities for clinical trials and patient recruitment in
emerging Central and Eastern European markets.
• The acquisition of DUH, a well-established business operating in the
same area of activity as Synexus, complements the organic growth of the
Company.
• The acquisition of DUH is expected to be earnings accretive for Synexus
for the year to 31 March 2007.
Details of the acquisition
The maximum consideration of €2.75 million is satisfied as follows:
• €1 million payable in cash on completion.
• €0.5 million payable on completion by the issue of 362,976 new ordinary
shares in Synexus at 95 pence per share. Application will be made as soon as
practicable for these new ordinary shares to be admitted to trading on AIM.
• €0.5 million deferred consideration payable in cash on the first
anniversary of completion.
• Up to a further €0.75 million payable in cash, dependent on the level of
profit after tax of DUH for the year ending 31 March 2007. In order to earn
the maximum level of consideration, DUH would have to achieve profit after
tax of £258,620 in that year.
Commenting on the acquisition, Michael Fort, Chief Executive of Synexus said:
"I am very pleased to be able to report the completion of the purchase of DUH,
which is a high quality clinic and the major recruiter of patients in Hungary.
DUH is in a very exciting position both geographically and strategically and
will dovetail well into the Company's European group, which has seen the
purchase of SCM in Wroclaw, Poland and the opening of an office in Sofia,
Bulgaria. The prospects from these centres alone are excellent as they enable
the Company to offer a pan-European solution to our clients who have significant
hubs and head offices in mainland Europe.
Additionally, the centres have varying specialities in their domestic markets
allowing us to widen the therapeutic areas offered to our clients. We will
continue to look for similar types of acquisition opportunities over the coming
months, with the active encouragement of our clients."
Note
An exchange rate of £1 : 385 HUF and £1 : 1.45 EUROS has been used in this
announcement in relation to the financial information on DUH.
Press enquiries
Synexus Clinical Research plc Tel: +44 (0)1257 230723
Michael Redmond, Chairman
Michael Fort, Chief Executive
Biddicks - Financial Public Relations Tel: +44 (0)20 7448 1000
Zoe Biddick
Brewin Dolphin Securities Tel: +44 (0)845 270 8600
Mark Brady/Sarah Kent
This information is provided by RNS
The company news service from the London Stock Exchange