Healthcare and strategic marketing group Cello Group acquired the assets of Advantage Healthcare for consideration of $1.5m cash, it announced on Tuesday.
The AIM-traded firm said further cash consideration would be paid to the vendors on a dollar-for-dollar basis to the extent that the acquired net current assets of Advantage Healthcare are more than $0.5m at the date of completion.
Additionally, deferred consideration of up to $3m would be payable in a mix of cash and shares, dependent on Advantage's financial performance over the period from 1 July 2017 to 30 June 2021
Cello said that deferred consideration would be paid in a minimum of 75% cash, with the balance in new ordinary shares.
"We are delighted to welcome Advantage Healthcare to the Cello Health family as they further support our focus in providing high value, strategic advisory services to our biopharmaceutical clients globally," said Cello Health US CEO Julia Ralston.
"We look forward to adding this team's wealth of experience, gained from both Advantage's work portfolio over the years and also senior positions held within the industry."
The board said Advantage Healthcare, founded by Debbie Glick over 20 years ago is well-established as a leading consultancy providing critical analysis and insights in biopharmaceuticals, supporting new products and business development.
Advantage is based in Princeton, New Jersey.
For the year to 31 December, Advantage Health had an unaudited turnover of $4.5m, gross profit of $3m and unadjusted operating profit of $0.3m.
As at 31 December, it had unaudited net assets of $0.4m.
Cello said the acquisition of Advantage Healthcare would complement its existing capabilities in consulting, market research, and science-based communications.
Advantage Healthcare would add "further depth" to Cello Health's ability to work from the early stages of drug development and across the life cycle to assist clients in meeting their most mission critical challenges, the board explained, which was also consistent with reinforcing Cello Health's commitment to the core US market and its overall aim of becoming a "leading" global health services company.
"Joining Cello Health will provide a win-win combination for our global healthcare clients, offering a broad base of strategic expertise and service in the pipeline and marketed products across nearly 100 disease categories," commented Advantage Healthcare CEO Debbie Glick.