CFA Society Singapore
SINGAPORE (Apr 3): Clearbridge Health is acquiring a 89.6% stake in IGM Labs of Indonesia for $9.4 million or 2.8 times its EV/EBITDA.
The sale and purchase agreement was signed between Clearbridge’s wholly-owned subsidiary SAM Laboratory and seller PT Kreasi Putra Nusantara.
IGM Labs provides lab testing services by partnering with medical device equipment manufacturers and hospitals. Through joint agreements, IGM Labs also operates labs located with partnering hospitals.
In addition to managing a laboratory under an existing joint operation contract, 12 contracts for the operation of laboratories in public hospitals held by PT Indofarma Global Medika will also be transferred to IGM Labs under the acquisition deal.
For the FY ended Dec 2017, the 12 contracts have generated a total revenue of $14.7 million, EBITDA of $3.8 million and net profit after tax of $1.3 million, says Clearbridge.
In addition, IGM Labs is also reimbursed by Indonesia’s social security department, to provide lab testing services under its universal medical healthcare plan.
Shares in Clearbridge Health closed 2.2 cents higher at 19 cents on Wednesday.