Microba Life Sciences Limited announced that Sonic Healthcare Limited has agreed to invest $17.8 million to acquire a 19.99% shareholding in Microba. In addition, Sonic is seeking to acquire options for an additional 5% equity position, subject to shareholder approval. Exercise of the options by Sonic would result in a further investment of $7.5 million in Microba.

Microba and Sonic have entered into initial terms of an agreement which enables Sonic Healthcare Limited and its subsidiaries to exclusively distribute Microba's microbiome testing products to its customers, including general practitioners and specialists, across Germany, Belgium and the United Kingdom for a period of 1 year commencing on 31 January 2023 with the intention to extend subject to finalisation of full license and distribution agreements. The initial agreed terms also provide Sonic Healthcare Limited and its subsidiaries with non-exclusive distribution rights for Switzerland, the United States, Australia and New Zealand. All license and distribution agreements will accommodate existing Microba service delivery and distribution arrangements.

The full license and distribution arrangements are expected to be finalised over the coming months. The partnership is expected to significantly increase Microba's addressable market by bringing Microba's testing products to Sonic Healthcare's primary and specialist healthcare professional customer base.