Global analytical science and device company Trajan Group Holdings (ASX:TRJ) has completed the acquisition of California-based Neoteryx, a leader in blood micro sampling devices
Trajan has acquired 100 per cent of the shares in Neoteryx along with the remaining global operations through a share swap and cash payment arrangement.
The current parent company of Neoteryx, Farrona will be issued 4,659,843 ordinary fully paid shares in Trajan under voluntary escrow agreement for a minimum period of six months.
An additional cash payment of $7 million (US$5.05 million) to be fully funded through debt, will be paid by Trajan to Farrona, excluding closing working capital adjustments.
The majority shareholder in Farrona is Mr Fasha Mahjoor, founder and chief executive officer of Neoteryx. Mr Stephen Tomisich, founder and chief executive officer of Trajan said “this transaction will mark the moment that Trajan changed gear in driving the global commercialisation and adoption of micro sampling at scale. Remote sampling is an essential element in progressing personalised, preventative and data-based healthcare. We are building our device portfolio and the marriage with Neoteryx brings together the hemaPEN®1 format, Mitra®2, VAMS®2 and soon our micro-biopsy device for skin sampling.
Importantly we are also building the tools around the entire workflow, from consumer portals to laboratory automation, through to the laboratory function itself. While not immediately EBITDA accretive as a result of this transaction we expect to see a meaningful acceleration of the micro sampling portfolio’s contribution to both Trajan’s top line and EBITDA growth over the next 3-5 years.”
Fasha Mahjoor added “I am extremely pleased to see my Neoteryx team find its next home in Trajan. Today Neoteryx is a global leader in blood micro sampling, the team has achieved incredible progress in pioneering the pathway towards decentralised healthcare. With the very clear direction and near future objectives that Trajan has in place, including having the full tool set to enable development and deployment of complete workflow solutions, the adoption will be significantly increased. I am also very pleased to continue the journey as a Trajan shareholder, as I can clearly see a very bright future for the Company.” With the departure of Mr Mahjoor, Mr Tomisich will assume an acting chief executive position with the current Neoteryx leadership team reporting directly to him.
Mr Tomisich continued “bringing Neoteryx under the Trajan banner isn’t just about the device or products, it is also about the global Neoteryx team. It’s a dynamic leadership group based in the USA, UK and Europe with combined 50 years experience in micro sampling commercialisation with strong backgrounds in chromatography and sample preparation”.
Shares in Trajan Group Holdings (ASX:TRJ) are trading 1.5 per cent higher at $4.03.