Avacta Group Plc (AIM:AVCT) conditionally agreed to acquire Launch Diagnostics Holdings Limited for £37 million on October 18, 2022. Under the terms of transaction, cash consideration of £24 million and £13 million of earn-out based on future business performance will be paid. The cash consideration for the acquisition is intended to be financed out of the net proceeds of a financing by way of a convertible bond issue by Addition Finance (Jersey) Limited. As of 31 December 2021, total revenues were £32.75 million with total adjusted EBITDA of £8.52 million, a profit before tax of £9.36 million and net assets of £17.0 million. As of February 13, 2023, Avacta will issue and allot 2,400,000 new ordinary shares of 10 pence each. After settlement of the conversion, the principal remaining under the convertible bond will be reduced by £2.85 million to £49.40 million. The conversion has expected to occur at February 16, 2023. Richard Naish, William Procter, Anna Musk, Nicola Parkinson, Elle Sugden, Liz Graham, Ruth Bamforth, Claire Burrows, Grace Stirrat, Michael Cordeaux, Laura Oxley, Lauren Owens, Shelley Quinn, Micha Naglis, Rebekah Dailey, Sarah Ward and Rebecca Riding from Walker Morris LLP acted as the legal advisor to Avacta Group Plc (AIM:AVCT). Stifel Nicolaus Europe Limited acted as the financial advisor to Avacta Group Plc (AIM:AVCT).

Avacta Group Plc (AIM:AVCT) completed the acquisition of Launch Diagnostics Holdings Limited in October 2022.