New Milton, UK, 30 April 2009 – Genetix Group plc (“Genetix”) (AIM: GTX), the cell imaging and analysis group, today announces that it has acquired all of the issued share capital of SlidePath Limited (“SlidePath”), in order to further strengthen its position in the fast growing digital pathology market. Genetix has acquired SlidePath, a private company based in Dublin, Ireland, for cash and shares worth up to €3.7 million (£3.3 million) of which €2.5 million (£2.2 million) was paid on closing and up to a further €1.2 million (£1.1 million) is payable based on the achievement of EBIT milestones during the years 2009 and 20101.
Strategic rationale
• In line with Genetix’ strategy to accelerate and strengthen its presence in the growing digital pathology market;
• Natural progression following on from the 2006 acquisition of Applied Imaging, strengthening Genetix’ tissue analysis product offerings for both the clinical and drug discovery markets;
• SlidePath’s competencies in cell imaging analysis software are aligned to Genetix’ core skills in imaging and image analysis, enabling Genetix to build a stronger platform to offer a broader mix of products for the digital pathology market;
• SlidePath’s expertise in web-enabled viewing, information management and computer-aided image analysis solutions will enhance Genetix’ product offerings through added functionality in its current markets of drug discovery and diagnostics; and
• Genetix’ sales and customer support infrastructure worldwide and deep customer relationships with diagnostics and pharmaceutical companies will open up new markets and customers for SlidePath products.
SlidePath
SlidePath, a Dublin City University spin out, was founded in 2003 and has 25 employees and customers in 10 countries, including the UK, Ireland, Germany, France and Australia. Audited results for the 12 months ended 31 December 2008 showed revenues of €1.3 million with a loss before tax of €0.5 million; net liabilities as at 31 December 2008 were €0.1 million. Over the two years ended 31 December 2008 SlidePath has grown its reported revenues at a compound annual growth rate of 61%.
SlidePath has a strong product offering allowing the analysis, management and viewing of tissue and cellular samples via the web for the growing digital pathology market. Digital pathology is the computer-enabled management and interpretation of pathology information generated from slides. The market has multiple applications, including clinical laboratories, clinical trials, drug discovery and academia. Digital slides overcome problems associated with glass slides including damage and deterioration and allow samples to be viewed, archived and re-examined remotely. The founding shareholders of SlidePath, the Chief Executive Officer, Dr Donal O’Shea, and Head of Customer Relations, Dr Sean Costello, will remain with and continue to lead the business.
