MedAdvisor Limited (ASX:MDR) Provides Strategic Review Update
Transaction Details
MedAdvisor Limited has entered into a non-binding Letter of Intent with an Australian subsidiary of a major multinational software company to sell its ANZ business division and associated intellectual property.
Financial Terms
The agreement outlines a headline price of $35 million, with a potential total consideration of $42.35 million based on a three-year earn-out (earn-out is uncapped and currently estimated to recoup $7,350,000) tied to the Target Group’s performance. Additionally, $8 million of the headline price will be retained by the Purchaser and is subject to post-completion adjustments.
Conditions and Timeframe
The transaction is contingent upon due diligence and the execution of binding sale documentation. An exclusive due diligence period of five weeks, extendable by two weeks, has been granted. A binding sale agreement is expected by 30 June 2025. The company may incur a break fee of $1 million plus GST under certain termination conditions.
Future Plans
Proceeds from the potential transaction are likely to be used to reduce the company’s debt position, with a possible return to shareholders pending deal adjustments and earn-out performance.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended MedAdvisor. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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