Vitrolife AB (publ) has completed the acquisition of 100% of the shares in OCTAX Microscience GmbH “OCTAX” and MTG Medical Technology Vertriebs-GmbH “MTG”. Vitrolife thereby strengthens its market position and broadens the product portfolio within a growth segment of IVF.
Profitable growth companies
OCTAX is the developer and producer of the world-leading OCTAX Laser and Imaging Systems. MTG is the exclusive global distributor of OCTAX and acts as a distributor in Germany, Austria and Switzerland for IVF products from other manufacturers as well. Furthermore, MTG develops and markets a range of their own IVF products globally, primarily within the cryo-preservation, QC and andrology areas. The head office of the companies is located in Bruckberg, Germany and the companies have in total approximately 30 employees. The consolidated net sales for the companies in 2015 amounted to approximately EUR 8.5 million (6.9). The consolidated operating income before depreciation and amortization (EBITDA) in 2015 amounted to approximately EUR 2.0 million (0.6). The consolidated net sales for the companies during January to March 2016 amounted to approximately EUR 2.7 million (1.8).
The product line OCTAX Laser and Imaging Systems is the largest in terms of revenue. It is a modular concept of hard- and software tools designed for maximized efficiency and ease of use. The laser systems are compatible with the leading microscope suppliers. They are used for IVF procedures such as embryo biopsy for subsequent genetic testing, assisted hatching and intra-cytoplasmic sperm injection (ICSI). With the support of OCTAX Laser Shot™ and OCTAX NaviLase™, IVF clinics can through laser technology remove a few cells from the embryo and use them for embryo selection procedures such as pre-implantation genetic screening (PGS) and pre-implantation genetic diagnosis (PGD).
Broadens product portfolio and strengthens market position
There is a trend towards an increased involvement of technology, such as Time-lapse and PGS, in IVF-treatments. The key drivers for increased use of technology are improved treatment results, increased earnings potential and more efficient processes at the clinics. The number of embryo biopsies is continuously increasing worldwide as a consequence of the increased use of PGS and PGD. Currently, the vast majority of the IVF clinics in the world use laser equipment for some procedures and as the demand for biopsies increases, Vitrolife expects that the clinics will invest in more laser equipment for capacity reasons. “The acquisitions will improve Vitrolife´s product offer towards customers, strengthen the company´s knowledge and generate a stronger market position in order to drive future growth”, says Thomas Axelsson, CEO of Vitrolife AB. “With its global market presence, strong brand and complementary product range, Vitrolife is the right strategic partner for MTG and OCTAX”, says Dr Klaus Rink and Richard Hampl-Portenlänger, majority owners and founders of OCTAX and MTG.
New business unit within Vitrolife
The business conducted in OCTAX and MTG will form a new business unit within the Vitrolife group. Dr Paul Gassner, currently CEO of MTG, has been appointed Business Unit Director and will report to Vitrolife´s CEO Thomas Axelsson. The business unit will be based in Bruckberg, Germany.
Accretive to earnings per share
The purchase sum for both companies amounted to EUR 13.7 million. The considerations were paid in cash and were financed by available liquid funds. The acquisitions are expected to be accretive to earnings per share from 2016 and onwards.
Presentation at Capital Markets Day
The acquisitions will be presented at the telephone conference on Friday July 15 at 10.00 a.m. in connection with the release of the January – June interim report. The acquisitions will also be presented at the company’s Capital Markets Day on September 20 in Göteborg.
Gothenburg, June 1, 2016
VITROLIFE AB (publ)
Thomas Axelsson, CEO
Queries should be addressed to:
Thomas Axelsson, CEO, tel 46 31 721 80 01
Mikael Engblom, CFO, tel 46 31 721 80 14
Vitrolife is required to publish the information in this press release in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on June 1, 2016 at 08:30 a.m.
This is a translation of the Swedish version of the press release. When in doubt, the Swedish wording prevails.