Sweden's ADDvise Group AB (publ) agreed to acquire an unnamed Helsinki-based distribution company focused on medical-technology equipment.
Under the agreement, ADDvise will pay 33 million Swedish kronor on a cash and debt-free basis.
The acquisition will be funded using ADDvise's own funds, along with proceeds from a rights issue guaranteed by the company's major shareholders and directors.
ADDvise expects the deal to strengthen its position in the Nordic healthcare market, and increase its profitability and revenue.
The distribution company may receive up to an additional 11.3 million kronor if it meets certain earnings targets. ADDvise will make the earnout payments twice: up to 5.7 million kronor each in the second quarters of 2020 and 2021.
ADDvise said the distribution company generated revenues of 65 million kronor in 2017, and its revenue forecast for 2018 is 67 million kronor.
The transaction, which is expected to close in the first quarter of 2019, remains subject to due diligence.
Mangold Fondkommission AB is ADDvise's financial adviser for the acquisition, with Krogerus as its legal adviser.
ADDvise is a supplier of equipment to healthcare and research facilities.
As of Dec. 12, US$1 was equivalent to 9.09 Swedish kronor.