DnB Markets - Vitrolife AB (VITIF) Vitrolife (Buy, TP: SEK395.00) - Major acquisition in genomics

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DnB Markets

Patrik Ling

EUR 91.48 For Business Accounts Only

Vitrolife (Buy, TP: SEK395.00) - Major acquisition in genomics

After Thursday’s close, Vitrolife announced a deal to acquire Igenomix from EQT for cSEK12.7bn. The deal is expected to be completed by year-end and should show a benefit from 2022. Igenomix is expected to have had a turnover of cEUR98m for the last 12 months and EBITDA of cEUR26m (excluding Covid-19 testing). We view the transaction as a positive and it strengthens Vitrolife’s market position; it should be accretive from 2022. We have not yet included the deal in our forecasts.

08/07/2021 10 EN

Underlying

Vitrolife AB

Vitrolife AB is a Sweden-based company engaged in assisted reproduction services. The Company's product portfolio comprises G-RINSE, which is a solution for rinsing of contact materials, EmbryoGlue, which is a human albumin recombinant, ASP, which is a solution for oocyte retrieval and rinsing, and Semen VTS, which is a viscosity treatment system, among others. It also provides a range of procedural solutions for sperm preparation, vitrification, embryo transfer and oocyte retrieval, such as temperature control, condition control, gamete-safe labware and embryo support. The Company is active in Australia, China, France, Italy, Japan, the United States and the United Kingdom, among others, and conducts its business through a number of subsidiaries, such as Vitrolife Ltd., Vitrolife Pty Ltd., and A.T.S. Srl.

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SE0000816043 Sweden

Provider

DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

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Analysts

Patrik Ling

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Vitrolife (Buy, TP: SEK395.00) - Major acquisition in genomics

Vitrolife AB: 1 director

Vitrolife (Buy, TP: SEK525.00) - Q2 report mostly a non-event

Vitrolife (Buy, TP: SEK525.00) - Adding Igenomix to the model

Ambu (Buy, TP: DKK138.00) - Guidance still looks conservative

Boliden (Buy, TP: SEK500.00) -

Shelf Drilling (Buy, TP: NOK40.00) - Focus on re-contracting

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