Compumedics to Acquire Alpha Trace

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Compumedics Limited (“Compumedics” or “Company”) has acquired an initial 50% share in Dr. Grossegger & DRBAL GmbH, which has been renamed Compumedics Alpha Trace GmbH (Alpha Trace).

Based in Vienna, Austria, Alpha Trace has successfully sold through its founder Dieter Grossegger, its range of neurological equipment in Southern Germany, Austria, and Switzerland for more than 40 years. Compumedics has acquired an initial 50% interest in Alpha Trace for 250,000, as the Company believes it will provide the two following significant benefits; Firstly, it will strengthen the selling infrastructure in this part of Europe as Alpha Trace, being part of the transaction, will have access to Compumedics’ existing range of products for sale into the region. The second is that Alpha Trace currently has an EMG device that is complementary to Compumedics’ existing neuro-diagnostic product range, a neuro-muscular diagnostic technology, that our neurodiagnostic customers often request and one that Compumedics has not had up until this point.  With this device/technology, Compumedics will be able to sell globally through its existing international sales channels. Compumedics expects that both these benefits will contribute up to 2m ($3m) in additional annual revenues within 18 months of the initial acquisition of the 50% shareholding in Alpha Trace. Alpha Trace currently has 5 employees and turns over approximately 500,000 pa.

Acquisition of Dr. Grossegger & DRBAL GmbH (Alpha Trace)

  • Background: Compumedics Europe GmbH, based in Germany, being a wholly owned subsidiary of Compumedics Limited, acquires a 50% shareholding in Dr. Grossegger & DRBAL GmbH on 1st September 2022 for 250,000 (in equivalent Compumedics’ product) and it is renamed Compumedics Alpha Trace GmbH and is based in Austria
  • Compumedics and Alpha Trace (Dieter Grossegger) will work together as equal owners of Alpha Trace for up to 3 years from the initial partial acquisition, subject to the terms and conditions of the mutually agreed to Shareholders Agreement
  • Compumedics shall have exclusive rights to sell Alpha Trace’s existing EMG technology globally, subject to regulatory approvals where required
  • Alpha Trace will have distribution rights to sell Compumedics existing range of sleep and neuro-diagnostics products, excluding MEG, into Southern Germany, Austria, and Switzerland
  • Compumedics can during the three-year period, post the initial acquisition, purchase the remaining 50% shareholding in Alpha Trace for 150,000 cash, or at the end of the three-year term may purchase the remaining 50% of the shares in Alpha Trace for 150,000 plus a, to be agreed, share of the profits over the three-year period

The Alpha Trace transaction fulfills two of Compumedics current stated growth objectives,  to grow our European business and the other to grow our neuro-diagnostic business.

Source: Compumedics

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