Australian Pharmaceutical Industries (ASX: API) closed out 2018 by announcing it acquired Sigma Healthcare Ltd (ASX: SIG), a wholesale and distribution service for pharmacies. With $2.96 million of reported revenue in FY2018, Sigma also owns several pharmacy retail brands in Australia such as Amcal Max, DDS, Amcal, and Guardian.
The deal was valued at $524.9 million (AUD $727 million), which is a 46.5% premium to Sigma’s one-month volume weighted average share price of $0.34 at the close of trading on December 13.
Australian Pharmaceutical Industries (API) offers wholesale product delivery, retail services, marketing programs, and business advisory services. Not only will API gain Sigma’s pharmacy locations and brands, widening its reach in the AU market, but the deal will give API an opportunity to cut costs on back-office operations.
Another deal down under worth noting in December is Tabula Rasa Healthcare’s (NASDAQ: TRH) purchase of DoseMe, an Australian based e-Health company. While terms of the deal remain closed, DoseMe develops DoseMeRx, a precision dosing tool to help physicians and pharmacists accurately measure high-risk parenteral medications based on individual needs. Tabula Rasa will now combine this technology with its Medication Risk Mitigation (MRM) platform to enhance medication safety solutions available in the hospital setting. Tabula Rasa expects the deal to close in the first quarter of 2019.