4th August 2016
MedaPhor takes heart from acquisition
Cardiff-headquartered MedaPhor is set for further growth following its £3m acquisition of a fellow medical technology developer.
The company has acquired Inventive Medical Ltd, a London-based business behind the HeartWorks brand, for a consideration of £3m in shares.
The acquired business, founded by cardiac anaesthesiologists at University College London Hospital and owned by University College London Hospitals Charity, has developed simulator technology used in cardiology related ultrasound training.
MedaPhor is a spin-out from Cardiff University which has developed ScanTrainer, an ultrasound training simulator.
The acquisition is expected to provide it with a complementary suite of ultrasound training products and an expanded sales team to enable wider coverage across the US, UK and Europe.
Stuart Gall told Insider: “We’ve focused on every part of the body from the pelvis up to the top of the rib cage but didn’t previously have the capability for hearts.
“We have had a good relationship with HeartWorks for a number of years. It’s a complimentary business in terms of speciality areas and enables us to provide as comprehensive a service as possible.”
The deal was revealed at the same time as MedaPhor announced a 17 per cent rise sales in its half-year results. Turnover grew to £1.26m in the six months to 30 June 2016, up from £1.08m a year earlier.
During the period, the company raised £3m through a share placing and expanded its North American operations with new sales team and an American Board of Obstetrics and Gynecology.
“We’re going to keep the foot on the gas with organic growth” said Gall. “But we will always have an eye out for future acquisitions if they fit with our business.
“The indicators at the moment are that the growth will continue and the pipeline looks encouraging.
“At the moment it looks like Brexit will have a fairly neutral effect on us. The pound falling and bringing overheads up is balanced by making more on dollar sales.
“It’s a good time to be in Cardiff and we’re very positive about the company going forward.”