Novacyt S.A.

Acquisition of IT-IS International Ltd

Regulatory News:

Novacyt (EURONEXT GROWTH: ALNOV; AIM: NCYT), an international specialist in clinical diagnostics, announces the acquisition of the entire share capital of IT-IS International Ltd (IT-IS), a profitable diagnostic instrument development and manufacturing company, for an initial cash consideration of £10.1 million. IT-IS is the exclusive manufacturer of Novacyt’s q16 and q32 rapid polymerase chain reaction (PCR) instruments.

Highlights

• Reinforces new strategy, as announced on 17 September 2020:

• Secures key IP for Novacyt’s q16 and q32 rapid-PCR instruments crucial for near-patient testing of COVID-19
• Expands Novacyt’s core capabilities in instrument manufacturing
• Expands Novacyt’s product offering in mobile PCR devices

• Immediately earnings accretive – IT-IS delivered revenues of £3.9 million and a net profit of £0.8 million for FY19, with revenues expected to increase to £5.0 million for FY20
• Strengthens Novacyt’s position to support the longer-term growth opportunity for rapid near-patient testing

Graham Mullis, Group CEO of Novacyt, commented:
“We are delighted to announce this strategically important acquisition of IT-IS and we welcome the employees to the Novacyt Group. IT-IS has established a reputation as experts in the development of mobile and rapid PCR instruments. Novacyt has been working with IT-IS for more than five years through the sale of the q16 and q32 instruments. During this time, IT-IS has proven the quality, performance and reliability of its mobile PCR platform. This acquisition ensures that Novacyt is in a strong position to fulfil the growing market demands for rapid near-patient testing of COVID-19, as well as other infectious diseases.”

Roderic Fuerst, Managing Director of IT-IS, added:
“We are delighted to join the rapidly growing Novacyt Group. Working together since 2014, we have developed excellent working relationships with the team at Primerdesign and formed a clear understanding of the complementary nature of our respective businesses. We look forward to applying our expertise in instrumentation as part of the Novacyt Group to create world class integrated diagnostic workflows. In the short-term our clear mission is to support the Novacyt Group in delivering systems in volume to support expanded point of need COVID-19 testing this winter.”