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Ergomed buys Adamas Consulting Group in £26m cash deal
9th Feb 2022 09:11
(Sharecast News) - Pharmaceutical services company Ergomed announced the acquisition of Adamas Consulting Group on Tuesday, for £25.6m in cash.
The AIM-traded firm said the purchase price represented an enterprise value of £24.2m and cash acquired of £1.4m, and was paid on completion.
It said the transaction was expected to be immediately accretive to its future earnings, with further growth synergies and strategic benefits expected in future years.
Ergomed described Adamas as a "well-established, leading provider" of "mission-critical" regulatory compliance and consulting services to the global pharmaceutical industry.
It operates across Good Clinical Practice (GCP), Good Pharmacovigilance Practice (GVP), Good Manufacturing Practice (GMP), Good Laboratory Practice (GLP) and Computer Systems Compliance (CSC) standards.
Adamas was bringing an established client base, with a global reach including the United States, Europe and Asia-Pacific regions, and more than 100 currently active clients.
It had worked with over 700 pharmaceutical companies previously, including 40 of the 50 largest global pharmaceutical and biotechnology companies.
Ergomed said Adamas would continue to operate as an independent consulting business following the acquisition.
The existing senior executive team would continue in their current positions in the business, led by Ian Montague, who would become president of Adamas Consulting, having been with the business for eight years, spending the past three as chief executive officer.
For reporting purposes, Adamas' financial results would be allocated as appropriate across Ergomed's existing businesses.
The board said the acquisition aligned with Ergomed's strategy to secure merger and acquisition transactions that further enhanced its global presence, and broadened its service offering, while ensuring quality and compliance were central to its operational growth strategy.
It said Adamas was focused on ensuring that the "highest standards of best practice" were attained across the pharmaceutical sector, with the directors saying the acquisition would thus keep Ergomed "at the forefront" of specialist service provision.
"This value-enhancing acquisition aligns with our disciplined merger and acquisition strategy, strengthening our position as a focussed premium pharmaceutical services business, whilst further building our group's scale in the strategically important US, Europe and Asia-Pacific regions," said Ergomed executive chairman Miroslav Reljanović.
"With this deal we are addressing the pharmaceutical industry's ever-growing need for best practice quality assurance due to the increasing complexity of drug development, pharmacovigilance and manufacturing processes and associated regulatory requirements.
"We look forward to working with Ian and the Adaman management team as we invest in and support this business to deliver a broader service offering to clients," Dr Reljanović added.
At 0848 GMT, shares in Ergomed were up 3.27% at 1,105p.
The AIM-traded firm said the purchase price represented an enterprise value of £24.2m and cash acquired of £1.4m, and was paid on completion.
It said the transaction was expected to be immediately accretive to its future earnings, with further growth synergies and strategic benefits expected in future years.
Ergomed described Adamas as a "well-established, leading provider" of "mission-critical" regulatory compliance and consulting services to the global pharmaceutical industry.
It operates across Good Clinical Practice (GCP), Good Pharmacovigilance Practice (GVP), Good Manufacturing Practice (GMP), Good Laboratory Practice (GLP) and Computer Systems Compliance (CSC) standards.
Adamas was bringing an established client base, with a global reach including the United States, Europe and Asia-Pacific regions, and more than 100 currently active clients.
It had worked with over 700 pharmaceutical companies previously, including 40 of the 50 largest global pharmaceutical and biotechnology companies.
Ergomed said Adamas would continue to operate as an independent consulting business following the acquisition.
The existing senior executive team would continue in their current positions in the business, led by Ian Montague, who would become president of Adamas Consulting, having been with the business for eight years, spending the past three as chief executive officer.
For reporting purposes, Adamas' financial results would be allocated as appropriate across Ergomed's existing businesses.
The board said the acquisition aligned with Ergomed's strategy to secure merger and acquisition transactions that further enhanced its global presence, and broadened its service offering, while ensuring quality and compliance were central to its operational growth strategy.
It said Adamas was focused on ensuring that the "highest standards of best practice" were attained across the pharmaceutical sector, with the directors saying the acquisition would thus keep Ergomed "at the forefront" of specialist service provision.
"This value-enhancing acquisition aligns with our disciplined merger and acquisition strategy, strengthening our position as a focussed premium pharmaceutical services business, whilst further building our group's scale in the strategically important US, Europe and Asia-Pacific regions," said Ergomed executive chairman Miroslav Reljanović.
"With this deal we are addressing the pharmaceutical industry's ever-growing need for best practice quality assurance due to the increasing complexity of drug development, pharmacovigilance and manufacturing processes and associated regulatory requirements.
"We look forward to working with Ian and the Adaman management team as we invest in and support this business to deliver a broader service offering to clients," Dr Reljanović added.
At 0848 GMT, shares in Ergomed were up 3.27% at 1,105p.