Induction Healthcare PLC (LON:INHC) has outlined plans to make a transformational acquisition backed by a £25mln placing of new shares.
The Med-tech specialist is acquiring Attend Anywhere, a video consultation provider, for an initial £15.56mln in cash.
The vendors will also receive stock worth a further £10mln and an amount equivalent to the Attend Anywhere’s net assets, estimated at £800,000.
For that, Induction will take control of the UK market leader in video consultation in secondary care with a strong NHS footprint that is used by 200,000 patients.
The enlarged business will have £9.5mln in annual contracted revenues next year, with over 80% of those sales recurring.
Induction believes the deal will “accelerate the group's transition to profitability”.
James Balmain, the company’s joint chief executive, said: "The acquisition of Attend Anywhere is a compelling opportunity in our journey to provide a comprehensive virtual care platform for hospitals, doctors and patients.
“Attend Anywhere extends our existing product set with a mature video consultation platform already being widely used by NHS hospitals across the UK.
“Critically, it will also deliver Attend Anywhere customers an even higher standard of user support, technical resilience and customer service, via our existing UK based infrastructure.”
The stock sale will be conducted by N+1 Singer at 70p a share with a firm called Beech Hill acting as US placing agent.