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(Alliance News) - Inspiration Healthcare Group PLC on Thursday said it has agreed to acquire medical equipment product maker Vio Holdings Ltd for GBP4.0 million, funded through a placing.
Vio is the holding company for Viomedex, which "designs, manufactures and supplies single use respiratory products and sterile medical consumables".
Viomedex's earnings before interest, depreciation, taxation, and amortisation for the year ended March 31 was GBP700,000 on revenue totalling GBP2.5 million.
Inspiration intends to fund the GBP3.0 million cash component of the Viomedex buy through a placing, and has raised around GBP4.3 million through a 7.3 million share placing priced at 58 pence per share.
Shares in Inspiration were up 0.8% at 60.00 pence in London on Thursday afternoon.
The company currently expects to achieve expectations, for its half year results to July 31, with double-digit growth expected for its financial year ending January 2020.
Following the acquisition, Inspiration thinks it will be able to pay a "nominal dividend" for its year to January 2021.
Chief Executive Neil Campbell said: "We are delighted to announce an oversubscribed placing and acquisition of Viomedex which, once completed, will give us a wide range of products and added capability to drive the group forward.
"By combining our two companies we will immediately have some exciting new neonatal intensive care products, increase revenues, strengthened management and added production capability to our core business. The acquisition of Viomedex moves us closer to our goal of being the market leader in neonatal intensive care."
