REG - Ergomed plc - Acquisition of ADAMAS

ErgomedAnnouncement

09/02/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220209:nRSI0878Ba&default-theme=true

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 £8.5 million of revenue in 2021, an increase of
31% over the prior year with £1.8 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 £25.6 million, representing an
enterprise value of £24.2m and cash acquired of £1.4 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 £25.6 million, representing an enterprise value of
£24.2m and cash acquired of £1.4 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 £8.5 million, up 31% over 2020 total revenues, with
adjusted EBITDA of £1.8 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
(https://www.lsegissuerservices.com/spark/Ergomed/events/7ef82c4e-0fb7-4506-a420-16d1e3150aac)
 

 

Conference call
registration: https://cossprereg.btci.com/prereg/key.process?key=PF7ULG6HM
(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/
(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 Adviser and Joint Broker)              Tel: +44 (0) 20 7260 1000
 Freddie Barnfield / Euan Brown (Nominated Adviser)
 James Black (Broker)

 Peel Hunt LLP (Joint Broker)                                               Tel: +44 (0) 20 7418 8900

 James Steel / Dr Christopher
 Golden

 Consilium Strategic Communications - for UK enquiries                      Tel: +44 (0) 20 3709 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 (http://ergomedplc.com)
.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQBKFBBBBKBNBK