Pharma Equity Group executes on the Company's new strategy: Enters into Letter of Intent to acquire the MedTech company Otiom A/S
Globenewswire·2025-12-10 11:17

Core Viewpoint - Pharma Equity Group A/S has signed a Letter of Intent to acquire Otiom A/S, marking a significant step in its strategy to consolidate within the Life Science sector, including Pharma and MedTech [1][4]. Company Strategy - The acquisition aligns with Pharma Equity Group's strategy to identify and scale Nordic innovation companies addressing significant unmet medical needs [2]. - The integration of Otiom A/S into Pharma Equity Group's portfolio demonstrates a shift from pure drug development to include commercializable MedTech solutions [3]. Acquisition Details - The transaction values Otiom A/S at an Enterprise Value (EV) of DKK 15 million [5]. - Payment for the acquisition will primarily be made through a share-for-share exchange, expected to amount to approximately 10% of the current share capital, minimizing dilution [7]. - The acquisition is structured to ensure Otiom's current owners become co-shareholders in Pharma Equity Group, aligning interests for long-term value creation [7]. Otiom A/S Overview - Otiom A/S is a Danish MedTech company that enhances safety for individuals with dementia through advanced IoT technology [6]. - The company has a strong market presence, operating in 24 countries with over 9,700 units produced and 13 distributors in the EU [13]. Financial Performance - Otiom A/S generates revenue of approximately DKK 1.5 million per quarter, equating to an annual revenue of DKK 8 million, and operates close to break-even [13]. - The management expects Otiom to positively influence Pharma Equity Group's cash flow from operations and EBITDA for the financial year 2026 [13]. Next Steps - An exclusive Due Diligence process is being initiated, focusing on IP rights, commercial roadmap, and legal matters, with a final Share Purchase Agreement expected by the end of January 2026 [8].