Cello Group plc Acquisition of Advantage Healthcare Inc (3065L)

TIDMCLL

RNS Number : 3065L

Cello Group plc

18 July 2017

 
 For Immediate Release   18 July 2017 
 

Cello Group plc

Acquisition of Advantage Healthcare Inc

Cello Group plc (AIM: CLL; "Cello", the "Group" or the "Company), the healthcare and strategic marketing group, is pleased to announce the acquisition of the assets of Advantage Healthcare Inc ("Advantage Healthcare"). The proposed initial consideration for the Acquisition is US$1.5 million, which is payable in cash. Further cash consideration will be paid to the vendors on a dollar for dollar basis to the extent that the acquired net current assets of Advantage Healthcare are over US$0.5 million at the date of completion. In addition, deferred consideration of up to US$3.00 million will be payable in a mix of cash and shares, dependent on financial performance over the period from 1 July 2017 to 30 June 2021. This deferred consideration will be paid in a minimum of 75% cash, with the balance in new ordinary shares.

Information on Advantage Healthcare

Advantage Healthcare was founded by Debbie Glick over 20 years ago. It is well established as a leading consultancy providing critical analysis and insights in biopharmaceuticals, supporting new products and business development. The business is based in Princeton, New Jersey, USA.

For the year to 31 December 2016, Advantage Health had an unaudited turnover of USD$4.5m, gross profit of USD$3.0 million and unadjusted operating profit of USD$0.3 million. Advantage Health as at 31 December 2016 had unaudited net assets of USD$0.4million.

The acquisition of Advantage Healthcare will complement Cello Health's existing capabilities in consulting, market research, and science-based communications. Advantage Healthcare adds further depth to Cello Health's ability to work from the early stages of drug development and across the life cycle to assist clients in meeting their most mission critical challenges. This is also consistent with reinforcing Cello Health's commitment to the core US market and its overall aim of becoming a leading global health services company.

Julia Ralston, CEO of Cello Health US, commented: "We are delighted to welcome Advantage Healthcare to the Cello Health family as they further support our focus in providing high value, strategic advisory services to our biopharmaceutical clients globally. We look forward to adding this team's wealth of experience, gained from both Advantage's work portfolio over the years and also senior positions held within the industry."

Debbie Glick, Founder of Advantage Healthcare, commented: "Joining Cello Health will provide a win-win combination for our global healthcare clients, offering a broad base of strategic expertise and service in the pipeline and marketed products across nearly 100 disease categories."

The Group announces its pre-close trading statement on July 19(th) .

This announcement contains inside information.

Enquiries:

 
 Cello Group                      020 7812 8460 
 Mark Scott, Chief Executive 
 Mark Bentley, Group Finance 
  Director 
 
 Cenkos Securities                0207 397 8900 
 Bobbie Hilliam / Harry Pardoe 
  - NOMAD 
 
 
 Buchanan                         020 7466 5000 
 Richard Oldworth 
 Jamie Hooper 
 Madeleine Seacombe 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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July 18, 2017 02:00 ET (06:00 GMT)