DLA Piper advises Medica on US acquisition and GBP16m associated fundraising

DLA Piper has advised Medica Group plc (Medica), the UK and Ireland market leader in the provision of teleradiology services, on the proposed acquisition of RadMD LLC and associated placing and subscription of 11,111,110 new ordinary shares raising approximately GBP16 million.

The acquisition of RadMD LLC, a leading US Imaging Contract Research Organisation (iCRO) providing services to the fast-growing clinical trials market, provides entry into a new and exciting market for Medica with opportunities for growth and penetration of new geographies and customers. DLA Piper’s corporate partners Kevin Grant and Daniel Belostock from the firm’s New Jersey office led on the acquisition which is for a total cash consideration of up to USD21.7 million (c. GBP15.6 million).

The shares being issued by Medica pursuant to the fundraising represent approximately 9.98 per cent of the issued ordinary share capital of the company prior to the transaction. Investec Bank plc and Liberum Capital Limited acted as joint bookrunners to the placing. DLA Piper’s Birmingham-based corporate partner Rob Newman and associate Kirsty Underhill led on the fundraising whilst Addleshaw Goddard advised Investec and Liberum.

Rob Newman commented: “We are delighted to have been able to continue to support Medica on their exciting journey. This latest transaction, and their first equity capital markets fundraise since their IPO, demonstrates not only the ambition of the management team but also the strong support the market has for a business which can provide high quality global clinical services both to the public and private sectors.”

Dr Stuart Quin, CEO of Medica Group, said: “The past six months has seen us execute three significant deals in three different continents. DLA Piper has been able to demonstrate their global presence and corporate/commercial acumen in each, all whilst being managed by Rob Newman and his team in the UK. In choosing DLA Piper as our new legal adviser earlier in 2020, we were looking for not only experts in their field but also a desire to be part of the journey we knew we were embarking on. We are delighted with the level of support they have provided and the trusted business adviser they have become.”

This is the third significant transaction undertaken by Medica in the past six months, following the establishment of a joint venture with Australian listed Integral Diagnostics (in February 2021) and the acquisition of Global Diagnostics Ireland (in November 2020), all of which DLA Piper advised Medica on.