Admission to AIM and Placing of EKF Diagnostics Holdings plc
Zeus Capital acted as nominated adviser and joint broker to International Brand Licensing plc (“IBL”) in connection with its reverse acquisition of EKF diagnostic GmbH (“EKF”) and a placing of new ordinary shares to raise £15 million to fund the acquisition.
EKF, based in Barleben, Germany, was founded in 1990 and focuses on the development, manufacture and selling of diagnostic instruments and reagents to clinical and research laboratories, doctors’ offices and sports medicine testing sites worldwide. EKF focuses on diabetes and anaemia testing, two of the main segments of the point of care market. At completion IBL will be the holding company of a group of diagnostics businesses with offices in Germany, Poland and Russia (where EKF will own 60 per cent. of the issued shares of the local entity).
Under the terms of the acquisition agreement IBL will pay a total consideration of €14.32m to be satisfied by €11.32m in cash up front and €3m deferred consideration in shares. On completion IBL will change its name to EKF Diagnostics Holdings plc.
Julian Baines, CEO of IBL, said: “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.”