LONDON—Huntsworth, which earlier this year acquired healthcare public relations firm Dorland Global, has now bought a 100 percent stake in AXIS Healthcare Communications, another leading U.S. healthcare communications company.
An initial consideration of $18.4 million paid will be paid in cash. The maximum total purchase price, if AXIS hits performance targets, is no more than $55 million. For the year ended 31 December 2006, AXIS had consolidated profit before tax of US$2,627,000.
The acquisition further extends the reach of Huntsworth Health into the U.S., the largest healthcare market in the world. While both AXIS and Dorland operate in the healthcare communications arena, AXIS provides services to the clinical, medical, marketing and sales training departments of pharmaceutical, biotech and medical device companies, while Dorland works with their marketing departments. AXIS also includes the new healthcare marketing and advertising agency Evoke, which specializes in the growing market for digital communications.
As a result, Huntsworth says, there is significant potential to offer additional services to the existing client base of both companies. Huntsworth Health will be able to offer integrated services in the healthcare sector, with a global network and critical mass of more than 500 employees worldwide.
According to Lord Chadlington, Huntsworth chief executive: “Together, AXIS and Dorland provide the foundation for a powerhouse business in the U.S. which, when teamed with our European presence, strengthens our global healthcare communications network. The services provided by AXIS are complementary to the market research, advertising, and public relations services we already offer.”
AXIS is being acquired from Neil Matheson and six other members of its senior management team. Matheson will continue to lead the business following the acquisition, reporting to David Rowley, chief executive of Huntsworth Health.