hVIVO (HVO) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of two German clinical research units expands European footprint and service breadth, enabling multi-site Phase I and II trials across more therapeutic areas.

• Diversifies client base and revenue streams, adding predominantly European clients and access to four of the world's top 10 biopharma companies.

• CRS brings expertise in specialized patient trials, especially renal and hepatic impairment, complementing existing offerings.

• Supports M&A strategy and positions the group to achieve its £100 million revenue target by 2028.

• Germany's strong clinical research market and regulatory incentives support the strategic move.

Financial terms and conditions

• Acquisition price is €10 million in cash, less than 50% of CRS's annual revenue, fully funded from existing resources, with an enterprise value of €11.1 million.

• CRS generated €19.9 million revenue in 2024 and €18.6 million in 2023, with adjusted EBITDA losses of €1.8 million and €1.6 million, respectively.

• Restructuring and transaction costs estimated at €2.5 million in 2025, including net liabilities of less than €0.5 million.

• Group revenue guidance for 2025 is GBP 72–73 million, including CRS.

Synergies and expected cost savings

• Immediate margin improvement expected by internalizing services (biometrics, medical writing, PK analysis, laboratory, consulting) previously outsourced by CRS.

• Operational efficiencies anticipated by applying agile scheduling, project management, and advanced recruitment systems.

• Cross-selling opportunities expected across hVIVO, Venn Life Sciences, and CRS, with increased average contract sizes and a stronger sales pipeline.

• Enhanced financial and project accounting systems to drive further efficiencies.