Observe Medical aims for a transformative acquisition to become the leading urine measurement system provider

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Observe Medical aims for a transformative acquisition to become the leading urine measurement system provider

Oslo, 21 October 2022 – Observe Medical ASA ("Observe Medical" or "the Company" and together with its subsidiary "the Group") has entered into an exclusive agreement with the intention to acquire the rights to own, produce and sell an extensive portfolio of urine measurement products from Convatec Group Plc, a global medical products and technologies company.

The Convatec product range comprises industry-recognised products and brands such as UnoMeter™ Safeti™ Plus, UnoMeter™ 500, and UnoMeter™ Abdo-Pressure™. These products are used for routine or post-operative drainage, collection, and measurement of urine output from critically ill patients in hospitals and intensive care units (ICUs). The product range is complementary to Observe Medical’s digital and automated urine meter, Sippi®. Production equipment is included in the agreement.

The products Observe Medical intends to acquire are market leading in Europe and in several other countries and have generated annual revenues of around EUR 18 million and will contribute significantly to the Group’s gross profit.  Yearly, more than five million of these urine bags and accessories are sold and shipped to several hundred customers and distributors in more than 50 countries worldwide.

The agreed purchase price for the product portfolio is USD 4,250,000. The financing of the contemplated acquisition will be considered and determined based on the outcome of the negotiations of the final acquisition agreement.

“The potential acquisition of Convatec’s urine measurement products represents another transformative agreement for Observe Medical and is in line with our growth strategy and long-term ambition. Alongside the potential acquisition of these leading brand names, we would also gain access to an extensive distribution network. This opens up sales channels in more than 50 countries for the urine measurement product portfolio, including Sippi®,” said Rune Nystad, CEO of Observe Medical.

The dialogue between Observe Medical and Convatec started earlier this year.

Observe Medical is also in discussions with several potential European manufacturers to secure sufficient production capacity and to strengthen the go-to-market strategy for the urine measurement product portfolio.

The potential acquisition of the product portfolio from Convatec is still subject to agreement between the parties on a final acquisition agreement and completion of such agreement, and no assurance can thus be given at this stage that the acquisition will be completed.

For further information, please contact:

Rune Nystad, CEO Observe Medical
Mobile: +47 916 24 683
E-mail: rune.nystad@observemedical.com

Per Arne Nygård, CFO of Observe Medical
Mobile: +47 411 04 345
E-mail: perarne.nygard@observemedical.com

About Observe Medical

Observe Medical is a Nordic medtech company that develops, markets and sells innovative medtech products for the global market. The Company is committed to improving patient welfare and patient outcomes, improving clinical data accuracy and promoting positive health economics.

The Company seeks to drive growth by leveraging its expertise in sales and commercialization of its broad portfolio of medical technology products, mainly in urine measurement, anesthesiology/ICUs, surgery and wound care, in combination with targeted M&A.

The Company is headquartered in Oslo, Norway, with additional offices in Narvik, Norway and Gothenburg, Sweden, and subsidiaries in Finland and the US. In addition, Observe Medical has a direct sale organization in the Nordics and a distributor network internationally.

Further information is available at www.observemedical.com.

[The information is such that Observe Medical ASA is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 14:40 CET, 21.10.2022.