IDT’s shares were last trading at $0.235, up 9.3% intraday.
CMAX offers a full suite of clinical trial services including Phase I clinical trial management and delivery plus recruitment in specific disease states for Phase II and Phase III trials.
IDT will receive a minimum $14 million in consideration for the CMAX business in a staged transaction.
As part of the deal, IDT will establish and integrate the CMAX business within a new company.
I’rom Group will initially acquire 61% of the shares of the new company. I’rom Group and IDT will jointly manage the new company through their 61% and 39% respective share holdings.
This will allow I’rom Group to integrate the CMAX business and to learn from IDT’s experience in managing it, paving the way to acquire the remaining shares over the next twelve months.
IDT will receive an initial cash payment of $10 million in consideration for 61% of the CMAX business.
A second payment for the remaining 39% will be a minimum of $4 million.
The second consideration payment may increase subject to an earn-out provision based on CMAX exceeding a specified revenue target for FY 2017.
An additional consideration payment may also become payable in the event CMAX achieves a specific business milestone before the close of the 2018 financial year.
Apr 03, 2017 0