TIDMERGO
RNS Number : 0878B
Ergomed plc
09 February 2022
PRESS RELEASE
Ergomed acquires ADAMAS, a leading global regulatory compliance
provider
-- Acquisition adds new complementary offering, strengthening
Ergomed's premium consulting services and bolstering its position
as a specialised pharmaceutical services provider
-- Further enhances Ergomed's global reach in the US, Europe and APAC
-- ADAMAS recorded GBP8.5 million of revenue in 2021, an
increase of 31% over the prior year with GBP1.8 million of adjusted
EBITDA in 2021 (unaudited)
-- Acquisition is expected to be immediately accretive to Ergomed's earnings
Guildford, UK - 9 February 2022 : Ergomed plc (LSE: ERGO)
("Ergomed" or the "Group"), a company focused on providing
specialised services to the pharmaceutical industry , today
announces the acquisition of ADAMAS Consulting Group Limited
("ADAMAS"), an international specialist consultancy offering a full
range of independent quality assurance services and specialising in
the auditing of pharmaceutical manufacturing processes, as well as
auditing clinical trials and pharmacovigilance systems. The
acquisition has been completed for a cash consideration of GBP25.6
million, representing an enterprise value of GBP24.2m and cash
acquired of GBP1.4 million, paid at completion. The transaction is
expected to be immediately accretive to Ergomed's future earnings,
with further growth synergies and strategic benefits expected in
future years.
Details of acquisition and strategic rationale
ADAMAS is a well-established, leading provider of
mission-critical regulatory compliance and consulting services to
the global pharmaceutical industry. It operates across Good
Clinical Practice (GCP), Good Pharmacovigilance Practice (GVP),
Good Manufacturing Practice (GMP), Good Laboratory Practice (GLP)
and Computer Systems Compliance (CSC) (together, GxP). ADAMAS has a
broad, established client base, with an expansive global reach,
including the US, Europe and APAC, with over 100 currently active
clients and having worked with over 700 pharmaceutical companies
including 40 of the 50 largest global pharma and biotech
companies.
ADAMAS will continue to operate as an independent consulting
business following the acquisition. The existing senior executive
team will continue in their current positions in the business, led
by Ian Montague who will become President of ADAMAS Consulting,
having been with the business for eight years and as Chief
Executive Officer for the past three years. For reporting purposes,
ADAMAS financial results will be allocated as appropriate across
Ergomed's existing businesses.
The acquisition aligns with Ergomed's strategy to secure M&A
transactions that further enhance the Group's global presence and
broaden the service offering to clients, whilst ensuring quality
and compliance are central to its operational growth strategy.
ADAMAS is focused on ensuring that the highest standards of best
practice are attained across the pharmaceutical sector and the
acquisition will therefore keep Ergomed at the forefront of
specialist service provision.
Dr Miroslav Reljanović, Executive Chairman of Ergomed, said :
"This value-enhancing acquisition aligns with our disciplined
M&A strategy, strengthening our position as a focussed premium
pharmaceutical services business, whilst further building our
Group's scale in the strategically important US, Europe and APAC
regions. With this deal we are addressing the pharmaceutical
industry's ever-growing need for best practice quality assurance
due to the increasing complexity of drug development,
pharmacovigilance and manufacturing processes and associated
regulatory requirements. We look forward to working with Ian and
the ADAMAS management team as we invest in and support this
business to deliver a broader service offering to clients."
Ian Montague, Chief Executive Officer of ADAMAS, said : "
Ergomed is a highly regarded business that shares our commitment to
delivering regulatory compliance as well as the highest quality
services to the global healthcare industry. Joining the Ergomed
Group provides us with an even stronger platform and increased
investment from which to grow our customer base, develop and scale
up our offering and continue to deliver gold standard quality
assurance services."
Dr Patricia Fitzgerald, Founder and Executive Chairman of
ADAMAS, said: "ADAMAS has gone from strength to strength over the
last 25 years and has established a global reputation for providing
excellent research quality assurance services to the life sciences
industry. ADAMAS has been successful in building an extensive and
stable client base and has inspired a high level of trust and
confidence with many long-term relationships. It has been an
exciting and challenging journey and I know that ADAMAS,
accelerated by strong support from Ergomed, will continue to grow
and offer outstanding QA support to its clients worldwide."
Acquisition terms and ADAMAS trading history
Under the terms of the purchase agreement, Ergomed has acquired
ADAMAS for a cash consideration of GBP25.6 million, representing an
enterprise value of GBP24.2m and cash acquired of GBP1.4 million,
paid at completion. The acquisition will be wholly funded from the
Group's existing cash resources and bank facilities.
In its financial year ended 31 December 2021, ADAMAS recorded
(unaudited) total revenues of GBP8.5 million, up 31% over 2020
total revenues, with adjusted EBITDA of GBP1.8 million.
Webcast and conference call for analysts:
A webcast and conference call for analysts will be held today, 9
February 2022, at 10am GMT.
Webcast link:
https://www.lsegissuerservices.com/spark/Ergomed/events/7ef82c4e-0fb7-4506-a420-16d1e3150aac
Conference call registration: https://cossprereg.btci.com/prereg/key.process?key=PF7ULG6HM
A copy of the presentation will be made available on the Ergomed
website before the webcast, under Reports and Presentations, here:
https://www.ergomedplc.com/investor-relations/reports-and-presentations/
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as amended by The
Market Abuse (Amendment) (EU Exit) Regulations 2019. On the
publication of this announcement via the Regulatory Information
Service, this inside information is now considered to be in the
public domain.
ENDS
Enquiries:
Ergomed plc Tel: +44 (0) 1483 402
975
Miroslav Reljanović (Executive
Chairman)
Richard Barfield (Chief Financial Officer)
Numis Securities Limited (Nominated Tel: +44 (0) 20 7260
Adviser and Joint Broker) 1000
Freddie Barnfield / Euan Brown (Nominated
Adviser)
James Black (Broker)
Peel Hunt LLP (Joint Broker) Tel: +44 (0) 20 7418
James Steel / Dr Christopher Golden 8900
Consilium Strategic Communications Tel: +44 (0) 20 3709
- for UK enquiries 5700
Chris Gardner / Matthew Neal ergomed@consilium-comms.com
/ Angela Gray
About Ergomed plc
Ergomed provides specialist services to the pharmaceutical
industry spanning all phases of clinical development, post-approval
pharmacovigilance and medical information. Ergomed's fast-growing
services business includes an industry-leading suite of specialist
pharmacovigilance (PV) solutions, integrated under the
PrimeVigilance brand and a full range of high-quality clinical
research and trial management services under the Ergomed brand
(CRO). For further information, visit: http://ergomedplc.com .
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END
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