Venn Life Sciences (AIM: VENN), a growing Clinical Research Organisation (CRO) providing clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announces the acquisition of Medevol Limited, a CRO business based in Northern Ireland, for a total maximum consideration of £670,000.
Venn has acquired the entire issued share capital of Medevol Limited ("Medevol") for an initial cash consideration of £70,000, to be satisfied through the Company's existing cash resources. There will be additional deferred consideration payable of up to a maximum of £600,000 over the next two years should Medevol hit certain financial targets relating to the business's annualised profit before tax. Any additional consideration will be satisfied as to one half in cash and one half in Venn shares.
The acquisition of Belfast based Medevol further strengthens Venn's UK operations following the establishment of the UK office earlier in the year. Medevol has been active in the UK clinical trials market since 2001, conducting full-service clinical trials for global pharmaceutical and biotechnology companies. Providing services across Phases II-IV, Medevol has extensive therapeutic experience throughout a broad range of indications.
For its year ended 31 March 2014, Medevol is expected to generate revenues of around £610,000 (2013: £84,000) and to contribute a profit before tax of circa £60,000 (2013: -£35,000). This year on year growth is as a result of the recent signing of a substantial new agreement with a global pharmaceutical company to supply CRO services for multiple UK based clinical trials. This contract is expected to contribute significantly to ongoing revenues for the business.
Commenting on the acquisition, Tony Richardson, CEO of Venn, said: "Medevol is the right fit for Venn as we continue to expand our business across Europe and increase our project pipeline. Venn, Medevol and the CRM business (acquired from CRM Clinical Trials GmbH as announced on 31 October 2013) have a shared global pharmaceutical client and this acquisition affords us the opportunity to develop that relationship as a key strategic account for the group going forward. The skills and talent that we are adding to our company further enhance our reputation as a mid-sized CRO that stays close to its clients, guiding them through the often complicated process of conducting trials across Europe."
Medevol Chairman, Brendan Mullan, adds: "The Medevol team was seeking to integrate seamlessly into an organisation that can offer both our clients and staff further opportunities. Venn provides us with access to a broader client base in addition to extensive experience and skills. We are delighted to be part of a dynamic and growing CRO and look forward to the new challenges and opportunities that will arise."