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- Ellex Medical Lasers (ELX) has executed a binding share sales and purchase agreement for the sale of Ellex Lasers & Ultrasound for $100 million
- Lumibird Group will pay in cash, but this agreement is subject to adjustments on Ellex’s behalf
- Lumibird will acquire all of Ellex’s products except for the Ellex 2RT and Ellex iTrack business segments
- If completed, the sale of Ellex Lasers & Ultrasound will significantly reduce Ellex’s revenue and asset base
- Since being reinstated on the ASX this morning, Ellex’s share price is up a steady 37.7 per cent with shares trading for 84 cents apiece
Ellex Medical Lasers (ELX) has executed a binding share sales and purchase agreement for the sale of Ellex Lasers & Ultrasound for $100 million.
Lumibird Group will pay in cash but is subject to adjustments relating to Ellex’s iTrack, 2RT and corporate costs at completion.
However, the proposed transaction specifically excludes the Ellex 2RT and Ellex iTrack business segments.
“The proposed sale of the Ellex Lasers & Ultrasound business to Lumibird highlights the value of our brand, the dedication of our employees, the strategic importance of our global sales and distribution network, and the many doctors and patients we serve,” Ellex CEO Maria Maieli commented.
“Lumibird will make an excellent strategic fit for Ellex’s market-leading range of lasers and ultrasound to treat a range of important eye diseases,” she added.
Headquartered in France, Lumibird is one of the world’s leading specialists in lasers with more than 500 employees globally and over €100 million (AUD$160 million) in revenue in 2018.
It is listed on the Euronext Paris Exchange with a market capitalisation of approximately €230 million (AUD$368 million).
Lumibird’s lasers and ultrasounds are sold under the Quantel Medical brand, which has an installed base of over 30,000 lasers, overs 140 employees, and a presence in over 110 countries globally.
This proposed transaction with Lumibird represents a significant milestone for Ellex shareholders and acknowledges that Ellex has an enviable track record of innovation, quality and market share.
If the transaction is completed, Lumibird will acquire Ellex’s products which consist of Tango and Tango Reflex lasers used in the treatment of glaucoma, and Ultra Q and Ultra Q Reflex used in the treatment of secondary cataracts.
Other products also include Integre Pro and Integre Pro Scan lasers used in the treatment of diabetic eye disease, and Ellex Eye Prime, Eye-One, and Eye Cubed ultrasound products.
Lumibird will also acquire $66.5 million in FY19 revenues, $9.5 million FY19 in earnings before interest, taxes, depreciation and amortization, and the company will also assume ownership of the Ellex manufacturing facility in Adelaide.
If completed, the sale of Ellex Lasers & Ultrasound will significantly reduce Ellex’s revenue and asset base.
Since being reinstated on the ASX this morning, Ellex’s share price is up a steady 37.7 per cent with shares trading for 84 cents.
