Revenio Group Corporation, Stock Exchange Release December 11, 2017 at 17:00 EET
REVENIO ACQUIRES MINORITY INTEREST IN OSCARE MEDICAL OY
Revenio Group Corporation ("Revenio", "the company") has signed an agreement to purchase the minority interest in Oscare Medical Oy, a stake of 46.5% in the company. Following the transaction, Revenio Group Corporation will own 100% of Oscare Medical Oy. Prior to the arrangement, Oscare Medical Oy was a Group company that was 53.5% owned by Revenio Group Corporation. As part of the agreement, all outstanding receivables of minority shareholders with respect to Oscare Medical Oy will transfer to Revenio. The terms and conditions of the agreement include the possibility of an additional purchase cost. As a whole, the arrangement is of
minor value to Revenio.
Revenio will make impairment-related entries in the financial statements for 2017. The arrangement and the impairments will have a one-off effect of around EUR 1.4 million on the operating profit (EBIT) for 2017. The impact of the arrangement and impairments on our net income is expected to be around EUR 300,000. The arrangement will have no effect on Revenio's financial guidance for the current year.
"Oscare Medical Oy's sales performance has been a disappointment to us. Making the OsCare Sono® measurement device a standard part of health care employees' equipment has turned out to be a much slower process than our original plans forecast, based on decision-making by customers. However, it should be noted that the product technology is good and it has strong patent protection, which we have yet to exploit fully. Customer feedback has been very encouraging, particularly in the Far East, where, unlike western countries, ultrasound equipment has an extensive market, but this has not been realized in sales. For this reason, we have decided to take full ownership of the company and wait for the markets to open up. This will enable us to target our resources more productively elsewhere," says Timo Hildén, CEO of Revenio Group.
Oscare Medical's small and lightweight Oscare Sono(TM) osteoporosis measurement device can measure bone strength and identify people with an elevated risk of osteoporosis. This small, mobile device allows the cost-effective screening of large populations and reduces the incidence of minor and avoidable, osteoporosis-related fractures. Patents have been granted for the Oscare Medical measurement method and device in Europe, the USA, Japan and China.
Revenio Group Corporation
For further information, please contact:
CEO Timo Hildén
Tel. +358 40 580 4774
timo.hilden@revenio.fi
www.revenio.fi
www.ventica.fi
DISTRIBUTION:
Nasdaq Helsinki
Financial Supervisory Authority
Principal media
www.revenio.fi
The Revenio Group in brief
Revenio is a Finnish, globally operating health technology corporation whose worldwide success is based on a strongly patented intraocular pressure measurement technology. The Revenio Group consists of Icare Finland Oy, Revenio Research Oy and Oscare Medical Oy. The common denominators of Revenio's business operations include screening, follow-up and the global need to make cost savings through preventive health care. Revenio seeks vigorous growth in health technology. Revenio aims to develop even more efficient and easily adopted methods for the early-stage detection of diseases with significance for public health. The focus of Revenio's screening technology is on the early detection of glaucoma, skin cancer and asthma, and the monitoring of these during the treatment process.
In 2016, Revenio Group's net sales totaled MEUR 23.4, with its operating margin for continuing operations standing at 30.1%. Revenio Group Corporation is listed on Nasdaq Helsinki.