Redeye Update: Xvivo Perfusion: Bid on Vivoline in focus

Note: This is a translation of the original report, written in Swedish, released on June 7th. On 18 April Xvivo Perfusion placed a bid on Vivoline. To us, it’s an obvious combination that strengthens both companies. We find that Xvivo is paying a generous price, which we believe Vivoline’s shareholders will accept.

We have not included Vivoline in our estimates, but for the current operations we anticipate solid growth and continued margin expansion. If the acquisition goes through, Xvivo expects the impact from Vivoline on EPS and EBITDA to be negative in 2016, but positive as of 2017. We keep our fair value of SEK 55 per share unchanged.

If the bid on Vivoline goes through, both our estimates and valuation will need updating.