ADDvise Group AB (publ) (OM:ADDV A) signed a Letter of Intent to acquire Surplus Diabetic, Inc. for $19.5 million on January 17, 2021. The purchase price for Surplus Diabetic amounts to a total of $19.5 million, divided into an initial purchase price of $16 million consisting of $15.5 million in cash and an interest-free promissory note of $0.5 million, and two potential earn-outs of maximum $1.6 million and $1.9 million respectively, given that the sellers achieve certain predetermined targets. The revenue for the last twelve months as of November 30, 2021, amounted to approximately $18.1 million, with an adjusted EBITDA of approximately $3.2 million.

The acquisition is financed with own funds. The acquisition is subject to ADDvise due diligence and that the parties agree to enter into a share purchase agreement. The share purchase agreement and completion of the acquisition is scheduled to be completed during Q2, 2022.

Mangold Fondkommission AB is acting as financial adviser to ADDvise in the acquisition. The acquisition is financed through own funds.