Liberum acts as Joint Bookrunner on fundraising for Medica Group PLC to fund the acquisition of RadMD
We are pleased to announce that Liberum acted as Joint Bookrunner on the recent fundraising for Medica Group PLC (“Medica” or the “Company”), the UK and Ireland market leader in the provision of teleradiology services. The Company raised gross proceeds of £16.1 million via a Placing and Subscription to fund the initial consideration for the acquisition of RadMD LLC (“RadMD”) and to further strengthen the Company’s balance sheet.
Medica raised £15.6 million through a placing of 10,727,666 new ordinary shares at a price of 145 pence per share (the “Placing”). Alongside the Placing, all of the directors of the Company, Junaid Baiwa (who will be non-executive director from 1 April 2021) and certain members of the senior management team, subscribed for 383,444 new ordinary shares, amounting to proceeds of £556,000 in aggregate. Total new shares represented 9.98% of the Company’s existing issued share capital.
RadMD is a leading Imaging Contract Research Organisation (“iCRO”) headquartered in Philadelphia, United States. The acquisition provides Medica with entry into the fast growing clinical trials market and will be earnings accretive in the first full year following the acquisition. It furthers Medica’s ambition to leverage its existing expertise as a leader in teleradiology to broaden its capabilities and expand into new geographies, in line with the Board’s stated strategy.
Medica will pay $16.3m (c. £11.7m) initial consideration for RadMD, and up to a further $5.4m (c. £3.9m) deferred consideration based on FY21 EBITDA performance. For the financial year ended 31 December 2020, RadMD delivered unaudited revenue of $8.9m and adjusted EBITDA of $1.2m.
The Placing was oversubscribed and received significant support from both existing holders and new blue-chip institutional investors.
Liberum acted as Joint Bookrunner alongside Investec. Liberum has been Corporate Broker to Medica since February 2021.
Board – Bidhi Bhoma
Investment Banking – Richard Lindley, Euan Brown, Kane Collings, Chris Whitaker
Research – Graham Doyle
Sales – Oliver Baxendale, Jamie Vickers, Julian Collett
Expert Access – Mark James
General Counsel – Rebecca Gordon, Alice Foster
Corporate and Investor Relations – Georgina Wood