INVO - INVO jumps 24% on deal to buy Wisconsin Fertility Institute

2023-03-20 09:30:18 ET

• Nano-cap fertility company INVO Bioscience ( NASDAQ: INVO ) added ~24% pre-market Monday after announcing that it has agreed to acquire Wisconsin Fertility Institute, a provider of routine IVF procedures, in a transaction worth $10M in cash and stock.
• The Madison, Wis.-based fertility center has generated ~$5.5M in revenue and ~$1.9M in net income for the 12 months ending September 30, 2022.
• "We believe that the acquisition of profitable IVF clinics complements our overall growth strategy and is strategically significant to accelerating the success of our mission," Chief Executive of INVO ( INVO ) Steve Shum remarked.
• Per the terms of the transaction, INVO is expected to pay $10M for the acquisition over three years, including a $2.5M upfront cash payment at the close of the deal. The company is required to pay the remainder in $2.5M annual payments over the next three years in the form of cash or INVO common stock.
• The acquisition is expected to complete in the second calendar quarter of 2023 .
• Seeking Alpha's Quant System, which consistently beats the market, flagged INVO as a Strong Sell , while Wall Street indicated it as a Hold.

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