Medaphor buys Inventive Medical for £3m

Ultrasound trainer Medaphor has bought cardio ultrasound supplier Inventive Medical for £3m, payable in shares.

The £3m will be paid by the issue of about 7m ordinary shares at 43p each, representing 20% of the enlarged share capital. About 4.6m shares will be admitted to AIM.

Inventive Media supplies cardio ultrasound products under its HeartWorks brands which Medaphor had previously collaborated with. HeartWorks’ simulator is used in cardiology ultrasound training and complements Medaphor's ScanTrainer simulator which specialises in female pelvis and upper abdomen ultrasound training.

The acquisition would expand the sales team providing wider coverage across the UK, US and Europe. It would also enlarge revenues, as for the year ended 31 March 2015 Inventive Medical’s revenue was £1.9m and a loss before tax of £300,000.

Chief executive Stuart Gall, said: "Having worked closely together for a year, both teams have recognised the opportunities that a closer alliance will bring, not just in combining sales and reseller networks and cross-selling across our customer base, but by offering an integrated and complementary solution.

“Increasingly, medical simulation centres are requesting full torso ultrasound training and we believe the coming together of our two technologies paves the way for this to become a reality for clinicians seeking to acquire the highest levels of competence in ultrasound practice."

Inventive Medical’s HeartWorks simulators were developed by cardiac anesthesiologists at University College London Hospital and owned by the hospital’s charity.

Shares in Medaphor were down 0.99% to 39.11p at 0826 BST.