Microba Life Sciences Acquires Invivo in Deal Valued at up to A$21.5 Million; Strengthens Position in Microbiome Testing Market
Microba Life Sciences Limited, a prominent provider of microbiome testing has made a strategic move by acquiring Invivo Clinical Limited (Invivo). Invivo, based in the UK, specializes in offering a wide range of microbiome testing and intervention products. This is the second recent consolidation of microbiome testing services companies following the recent announcement of the merger of Clinical Microbiomics A/Sand CosmosID Inc.
The acquisition deal, valued at approximately A$12.5 million, includes the potential for additional earn-out consideration of up to A$8.7 million, which will be payable in both cash and shares. Including all consideration, Microba will pay up to 2.4x 2023 sales for the company. To finance this significant acquisition, Microba is launching a 1-for-4 pro rata accelerated non-renounceable entitlement offer. This capital-raising endeavor aims to secure up to A$20 million from existing shareholders. The offer price has been set at A$0.23 per share, effectively increasing Microba’s issued capital by 25%.
Microba’s Chair, Pasquale Rombola, and Deputy Chair, Professor Ian Frazer, have expressed their enthusiasm for this strategic acquisition. They view it as a move that will strengthen Microba’s presence in the UK market, aligning with their international expansion strategy. Invivo’s established leadership position and substantial customer base in the UK make it a valuable addition to Microba’s portfolio. Furthermore, Invivo’s range of microbiome testing and intervention products align seamlessly with Microba’s existing technology.
Invivo, for its part reported revenue of A$8.9 million in FY23 from sales of testing and intervention products. It has maintained positive cashflow and required no external capital infusion. Since 2020, Invivo has successfully sold over 20,000 microbiome tests, which span various body sites such as the gut, vagina, mouth, and urinary tract.
This acquisition is set to be finalized by the end of October 2023, pending the fulfillment of customary conditions. With this strategic acquisition, Microba Life Sciences is poised to enhance its global footprint, gain access to new markets, and strengthen its position as a leader in microbiome testing and related services.