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(Alliance News) - Ergomed PLC on Wednesday said it completed the "value-enhancing" acquisition of ADAMAS Consulting Group Ltd for a cash consideration of GBP25.6 million.
Ergomed shares were up 3.3% at 1,105.00 pence each on Wednesday mid-morning in London.
The Guildford, England-based pharmaceutical company said that the acquisition price reflects an enterprise value of GBP24.2 million and acquired cash of GBP1.4 million.
The transaction is expected to be immediately accretive to Ergomed's earnings, with further synergies and strategic benefits expected in future years.
ADAMAS is a Berkshire, England-based provider of regulatory compliance and consulting services to the global pharmaceutical industry.
The business has worked with over 700 pharmaceutical companies, including 40 of the 50 largest global pharma and biotech companies, Ergomed said. It has an "extensive global reach" and is, therefore, expected to enhance Ergomed's geographic presence.
ADAMAS recorded revenue of GBP8.5 million in 2021, up 31% year-on-year, with adjusted earnings before interest, tax, depreciation and amortisation of GBP1.8 million.
Ergomed Executive Chair Miroslav Reljanovic said: "This value-enhancing acquisition aligns with our disciplined Mergers & acquisitions 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 Asia-Pacific regions."
He added: "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."
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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