4DMedical opens European operations via Contextflow acquisition
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The news: Respiratory imaging technology company 4DMedical has announced a major expansion into Europe, with the move accelerated by the acquisition of Austrian-based medtech Contextflow.
The numbers: 4DMedical said the acquisition has been agreed on “heavily discounted terms”, comprising upfront payments of $18.56 million in cash and 56,235 shares, plus an earnout of up to 2.59 million zero exercise price options over two years.
The company said the buyout delivers “capital-efficient access” to Europe’s respiratory and thoracic imaging market, estimated at USD1.5-2 billion ($2.1-2.8 billion), avoiding the time and cost of building a greenfield presence.
The context: Contextflow CEO Markus Holzer will assume the role of general manager of Europe, leading 4DMedical’s growth across the region.
4DMedical’s global footprint now spans North America, Europe and Australia and New Zealand.
4DMedical founder and CEO Andreas Fouras said the deal was secured on “extremely attractive terms”, growing its market opportunity by 50% for 6.5% of its existing cash balance, and less than half a percent of dilution to shareholders.
What they said: “4DMedical has expended into Europe over the weekend,” said Fouras.
“Upon completion of the transaction, we will have a European platform in a healthcare market approximately half the size of the United States, positioning 4DMedical across ANZ, North America and now Europe.”
The source: ASX
