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CareTech's Smartbox acquiring Rehavista in EUR 10m deal
29th Nov 2021 10:25
(Sharecast News) - Social care and education service provider CareTech announced on Monday that its group company Smartbox was acquiring Rehavista and its subsidiary company LogBUK.
The AIM-traded firm described Rehavista as Germany's largest provider of "augmentative and alternative communication" (AAC) products and services, employing more than 170 staff.
It said the company, which has six offices across Germany, provided a range of AAC and assistive technology products, with a "strong reputation" for service.
LogBUK is a subsidiary company, providing independent speech and language therapy to help AAC users through specialist clinical support.
Smartbox would pay a purchase price of €10m to be satisfied in cash on completion, expected on 30 November.
The transaction was being funded by the group's debt facility, with CareTech subscribing for additional shares in Smartbox so that post-completion, it would own 83% of Smartbox, with the remaining minority ownership continuing to be held by the Smartbox management team.
"We have been delighted to support Smartbox in achieving significant organic growth since it joined the group in October 2020," said CareTech executive chairman Farouq Sheikh.
"This acquisition is a natural but exciting next step for our digital technology division due to the close partnership that has been formed between Smartbox and Rehavista, since it began supporting Smartbox technology earlier this year."
Sheikh said the company shared its digital strategy and commitment to accelerate adoption of technology across the group when Smartbox joined, and had already made "great progress" in that area due to its joint initiatives.
"The addition of Rehavista to the group will further strengthen our combined specialist skill set, adding some of the best talent from one of the largest AAC markets in the world."
Rehavista's reach and expertise was said to be "unparalleled" in Germany, estimated to be the second largest funded AAC market globally after the United States.
CareTech said that, with its knowledge of assistive technology and established routes to market, the acquisition would provide a "significant opportunity" for Smartbox to expand the products and services available in Germany, expanding on the existing partnership between Smartbox and Rehavista, and across Smartbox's global customer base of more than 30 languages and 45 distributors.
Rehavista and LogBUK, headquartered in Bremen, generated revenue of more than €16m in 2020, with the acquisition expected to be "immediately earnings-enhancing" for CareTech.
"This is a unique opportunity to join forces with one of the leading companies globally in the assistive technology industry," said Smartbox managing director Dougal Hawes.
"Rehavista is known for its unrivalled knowledge of AAC and exceptional service and we know the business shares our passion for giving people a voice.
"As a team of clinical and technology professionals with very similar values, we are thrilled to now be working so closely with our Rehavista colleagues."
At 0952 GMT, shares in CareTech Holdings were down 0.43% at 572.5p.
The AIM-traded firm described Rehavista as Germany's largest provider of "augmentative and alternative communication" (AAC) products and services, employing more than 170 staff.
It said the company, which has six offices across Germany, provided a range of AAC and assistive technology products, with a "strong reputation" for service.
LogBUK is a subsidiary company, providing independent speech and language therapy to help AAC users through specialist clinical support.
Smartbox would pay a purchase price of €10m to be satisfied in cash on completion, expected on 30 November.
The transaction was being funded by the group's debt facility, with CareTech subscribing for additional shares in Smartbox so that post-completion, it would own 83% of Smartbox, with the remaining minority ownership continuing to be held by the Smartbox management team.
"We have been delighted to support Smartbox in achieving significant organic growth since it joined the group in October 2020," said CareTech executive chairman Farouq Sheikh.
"This acquisition is a natural but exciting next step for our digital technology division due to the close partnership that has been formed between Smartbox and Rehavista, since it began supporting Smartbox technology earlier this year."
Sheikh said the company shared its digital strategy and commitment to accelerate adoption of technology across the group when Smartbox joined, and had already made "great progress" in that area due to its joint initiatives.
"The addition of Rehavista to the group will further strengthen our combined specialist skill set, adding some of the best talent from one of the largest AAC markets in the world."
Rehavista's reach and expertise was said to be "unparalleled" in Germany, estimated to be the second largest funded AAC market globally after the United States.
CareTech said that, with its knowledge of assistive technology and established routes to market, the acquisition would provide a "significant opportunity" for Smartbox to expand the products and services available in Germany, expanding on the existing partnership between Smartbox and Rehavista, and across Smartbox's global customer base of more than 30 languages and 45 distributors.
Rehavista and LogBUK, headquartered in Bremen, generated revenue of more than €16m in 2020, with the acquisition expected to be "immediately earnings-enhancing" for CareTech.
"This is a unique opportunity to join forces with one of the leading companies globally in the assistive technology industry," said Smartbox managing director Dougal Hawes.
"Rehavista is known for its unrivalled knowledge of AAC and exceptional service and we know the business shares our passion for giving people a voice.
"As a team of clinical and technology professionals with very similar values, we are thrilled to now be working so closely with our Rehavista colleagues."
At 0952 GMT, shares in CareTech Holdings were down 0.43% at 572.5p.