hVIVO (AIM:HVO), the AIM-listed clinical development group and world leader in human challenge trials, has acquired CRS Clinical Research Services Berlin, a specialist Phase I/II clinical research unit with 350 completed studies and an established pharma client base.
The deal expands hVIVO's German network, following its January 2025 acquisition of CRS Mannheim and CRS Kiel, and adds specialist expertise in dermatology and women's health.
Upfront consideration is just €0.025 million, with hVIVO agreeing to pay 18% of CRS Berlin's annual revenue over the next three years, subject to minimum revenue thresholds being met.
Management expects gross earnout payments of approximately €6 million in cash, reduced to around €4 million after deducting an acquired pension liability of around €2 million.
CRS Berlin generated unaudited EBITDA of €0.3 million on revenue of €10 million in 2025, and holds a contracted orderbook of approximately €10 million as at 30 June, giving hVIVO strong visibility into 2027.
The acquisition is expected to be immediately earnings accretive and contribute positively to both revenue and EBITDA in the current financial year.
"The transaction terms reflect our disciplined approach to capital allocation, with the acquisition expected to be self-funding," said Yamin'Mo'Khan, chief executive of hVIVO.
CRS Berlin operates 32 beds, including 18 intensive monitoring beds, and around half of its proposal submissions are already made jointly with hVIVO's Mannheim site.
News Intelligence what this means for the company
hVIVO has acquired CRS Berlin, a Phase I/II dermatology and women's health specialist, for minimal upfront cash (€0.025m) plus a three-year revenue earnout capped at ~€4m net. The deal is immediately earnings accretive: CRS Berlin generated €10m revenue and €0.3m EBITDA in 2025, with a €10m contracted orderbook providing visibility into 2027. This is hVIVO's third German acquisition in six months, extending its network and specialist capabilities while preserving balance sheet strength—management notes the deal is self-funding.
The acquisition adds profitable, contracted revenue with minimal upfront capital outlay and a manageable earnout tied to performance. Against hVIVO's £13m cash position at 30 June 2026, the net €4m earnout represents material but not transformative leverage; the deal's immediate accretion and self-funding structure support near-term earnings without diluting the balance sheet.
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