ASX-listed Microba expands offering and UK footprint with IFL
29.2.2024Over the last 10 years, our understanding of the importance of the gut to overall health has jumped forward in leaps and bounds. It is now well understood that microorganisms, including bacteria, archaea, fungi, and viruses living inside the human digestive tract (known collectively as the gut microbiome) are critical to many bodily functions. Not just important in digestion and nutrient absorption, the gut microbiome has far-reaching effects on immune function, mental health, inflammatory and autoimmune disease, skin health, heart health, and overall well-being.
ASX-listed, Brisbane-based Microba has successfully commercialised a world-leading platform to test and analyse the human gut microbiome. Leveraging their diagnostics data, Microba then develops targeted therapeutics for microbiome-linked issues such as inflammatory bowel disease.
To support it’s next phase of international growth, and based on some opportunities that had presented to the company, Microba enlisted InterFinancial to run a buyside process. This resulted in the 100% acquisition of UK-based Invivo Clinical. InterFinancial’s Health Sector lead, Michael Kakanis led the process. A Doctor of Immunology, Michael transitioned into Finance in 2017 and, having led several of InterFinancial’s deals in the health sector, was perfectly positioned to partner with Microba.
Meeting challenging objectives head on
Through a thorough process of global opportunity assessment and due diligence, Invivo, a pioneer in UK microbiome testing, was confirmed as a strong candidate to support the next phase of Microba’s international growth. IFL helped build and strengthen the relationship between the parties and structure a deal that worked for the buyer, seller, and the public markets.
Michael Kakanis says, “there were a few characteristics that increased the complexity of the deal. For starters, Microba was acquiring in the UK – a very different time zone – so a lot of the deal was done between 5 pm and midnight. Microba also raised capital and issued equity, and had various stakeholders on both sides of the deal to manage actively. This included their strategic partner and shareholder, Sonic Healthcare, as well as the internal and external teams driving the due diligence process.”
Crafting a deal in a tricky market
InterFinancial worked together with the team at Microba to ensure these requirements were achieved and no stone was left unturned. And, in December 2023, Microba completed the transaction, acquiring 100% of Invivo. The acquisition put Microba in a leading position in the local market, with deep access to the UK healthcare market spanning both the integrative healthcare market through Invivo, and the GP, specialist and dietician market through their Sonic partnership.
“InterFinancial was instrumental in validating the Invivo opportunity, crafting a deal in a tricky market, and driving the deal through due diligence, signing and completion. InterFinancial ensured that not only the deal met our commercial criteria, but also aligned to our strategy and culture. They went over and above to get a deal done across multiple challenges through the process. A world-class team of professionals,” Dr Luke Reid, CEO, Microba.
