Vitrolife - Acquires into IVF diagnostics
Acquires IVF diagnostics company Igenomix Pays 36x LTM EV/EBITDA Pre-announced Q2’21 – CER sales growth of 94% Acquiring Igenomix – expands into genetic testing On Thursday 7 July, Vitrolife announced that it had entered into a agreement to acquire 100% of Igenomix from EQT and other shareholders. Igenomix was founded in 2011 and operates in women’s health and reproductive genetic testing for IVF clinics. The company has 26 labs globally, with US as its largest market. Tests offered include Endometrial Receptivity Analysis that evaluates the uterus and PGT-A for genetic evaluation of embryos.
The company is headquartered in Valencia, Spain and has 560 employees. The acquisition will expand Vitrolife’s coverage of the IVF journey and it sees cross selling potential through Igenomix complementing IVF clinic service offering. Creates a SEK 2.
7bn supplier to IVF clinics For June 2021, Igenomix expects to achieve an LTM revenue of EUR 122m (EUR 98m excl covid-19 testing) with an EBITDA of EUR 36m for a margin of 30% (c-19 adj. 27%). The company has ’17-’21 performed a CAGR in net sales of 37% (c-19 adj.
29%). Vitrolife pays an enterprise value of SEK 12. 7bn and LTM EV/EBITDA of 36x.
On an LTM basis, the acquisition will increase Vitrolife’s sales with 85% and combined sales of the new entity is SEK 2,702m (c-19 adj. SEK 2,460m). LTM adj.
EBITDA for the new company is 965m for a margin of 36%. The acquisition will be financed with 26. 9m new shares (17.
3m consideration shares and 9. 6m directed share issue) and increased debt. Post the acquisition, Vitrolife’s LTM ND/EBITDA will increase to 1.
7x. The acquisition is expected to be accretive on EBITDA per share from 2022. Post approval of the acquisition, sellers of Igenomix will obtain a 6.
6% ownership in Vitrolife. The acquisition is pending regulatory approval and is expected to close in Q4 2021. Q2 2021 trading update & conference call In conjunction with the acquisition Vitrolife also preannounced its Q2’2.