Poles apart as Selvita plots €50m acquisition spree
A Polish company with Cambridge UK operations is seeking to acquire contract research organisations (CROs) after raising €20.6 million in new capital.
Selvita is one of the biggest preclinical contract research organisations in Europe and its raise was the second largest transaction in terms of capital realised on the Warsaw Stock Exchange so far in 2020.
The money will allow Selvita to execute a development strategy which assumes that in 2023 the business will be able to achieve over €70m in revenues at a stable EBITDA margin and as a consequence reach a market cap of over €230 million.
Around €16m from the share issue will be used on acquisitions of selected European CROs and the reminder will be devoted to further organic growth.
Bogusław Sieczkowski, co-founder and CEO at Selvita, said: “The success of this share issue demonstrates investors’ confidence in both Selvita and the development strategy we have announced, as well as their trust in the large potential of the company’s business.
“We will make every effort to execute the assumptions of our strategy and continue Selvita’s dynamic growth on the global preclinical CRO market.”
Selvita is interested in acquiring companies that will either complement the current offering or allow for the expansion of its scale of operations.
Selvita says it will favour entities supplementing its portfolio of services in the area of drug discovery or regulatory studies. By the end of 2023, the company intends to execute three acquisitions, with the first one taking place this year.
Over the next three years, the company plans to invest €35m-€50m in the acquisitions.
Headquartered in Krakow, the company has a second research site in Poznan, Poland and foreign offices located in Cambridge MA and San Francisco Bay Area, in the US, as well as in Cambridge, UK.
Specialising in delivering integrated solutions Selvita has a proven track record of not only providing scientific excellence but also on building long-term partnerships with clients and playing an active, consultative role in the project execution.