AIM-listed International Brand Licensing (IBL) has agreed to acquire German medical diagnostics company EKF-diagnostic (EKF) for €14.32 million (£11.8 million).
The acquisition, which is classed as a reverse takeover because EKF is the larger of the two companies, will be made up of an initial €11.32 million in cash on completion and a €3 million deferred payment in shares, and is subject to shareholder approval.
The deal is to be funded through a placing by Zeus Capital and Matrix Corporate Capital to raise approximately £15.06 million by issuing 100,435,653 new ordinary shares at 15 pence each.
Under the deal IBL, which formerly owned two sports clothing and equipment brands, will change its name to EKF Diagnostics Holdings.
Julian Baines, CEO of IBL, says: ‘This acquisition is the first step in our strategy to build a diagnostics business and gives us a good platform for future growth both organically and by further acquisitions. We intend, in particular, to focus on devices and reagents relating to diabetes, one of the fastest growing diseases in the world.’
Germany-based EKF was founded in 1990 and develops and manufactures medical and research diagnostic equipment, focusing on diabetes and anaemia testing.
