Enlitic, Inc. (ASX: ENL) has entered into conditional binding documentation (SPA) to acquire 100% of the shares in healthcare medical imaging data specialist Laitek for total consideration of US$4.95 million.
Laitek, founded in the 1980s, is one of the major providers of tech-enabled healthcare medical imaging data migration and routing services in the US.
It offers contract-based medical imaging data migration services to customers on a re-occurring basis as well as ongoing software licensing. Laitek reported US$6.8 million in revenue in FY23 derived from its direct and OEM customers and has 55 employees, based in the US and Romania.
The Proposed Acquisition is subject to certain conditions, including Enlitic successfully conducting a capital raising to finance the cash acquisition consideration.
As a company incorporated in Delaware, securityholder approval will also be required to amend Enlitic’s constituent documents to facilitate the capital raising, and the acquisition is also conditional on obtaining this securityholder approval.
Upon completion, the Proposed Acquisition is expected to be earnings accretive in CY24 and will be a significant milestone marking a new phase of growth for the company.
There will be no changes to the board or senior management of Enlitic as part of, or in connection with, the Proposed Acquisition.
“Our proposed acquisition of Laitek will be transformational for Enlitic from a capability and financial perspective,” Michael Sistenich, CEO of Enlitic, said.
“Laitek and Enlitic are a strong strategic fit, allowing the provision of a differentiated and synergistic service offering for our clients. Our combined capabilities should allow us to accelerate our market penetration through delivering greater value to our clients and addressing multiple long standing operational challenges such as data migrations and storage, data standardization and the transition to cloud solutions.”
“From a financial perspective, we expect annualised cost savings of ~US$1M p.a. by the first full year of ownership and expect revenue synergies of ~US$5M from the third year of ownership onwards. The Proposed Acquisition represents an inflection point for Enlitic and a springboard for our future growth.”
The consideration payable to the current shareholders in Laitek for the shares in Laitek comprises:
* Cash of US$4M (proposed to be funded by the part of funds raised from the company’s proposed capital raising; and
* Scrip to the of US$950,000 payable via the issuance of new common stock in the company (the number of common stock being determined by refence to the issue price under the proposed capital raising) to the sellers, subject to obtaining securityholder approval.
