- Genetic Technologies (GTG) signs a deal to buy UK DNA testing company AffinityDNA for Â£555,000 (A$985,000)
- GTG will pay 50% of the cost paid upfront, with the remaining 50% to be paid one year later, subject to the financial success of the new venture.
- This is GTG’s second acquisition in 12 months after the company purchased EasyDNA in July 2021 for $5.4 million.
- GTG shares were flat at 0.3 cents at 2:36 p.m. AEDT
Genetic Technologies (GTG) has signed a deal to buy British DNA testing company AffinityDNA for Â£555,000 (A$985,000).
Genetic will pay 50% of the price upfront, with the remaining 50% to be paid on the anniversary of the conclusion of the agreement, subject to the AffinityDNA businesses meeting certain financial performance metrics.
The deal will see GTG acquire Affinity’s brand and distribution rights, which the company says will further strengthen its direct-to-consumer offerings and lifestyle division.
This comes after the company acquired EasyDNA in July 2021 for $5.4 million, making the AffinityDNA deal the second acquisition for GTG in the past 12 months.
GTG says the takeover of AffinityDNA would “provide an additional established revenue base for GTG’s future growth,” especially since AffinityDNA’s revenue had grown substantially over the past two years.
AffinityDNA sells DIY DNA test kits to members of the public for confirmation on things like paternity. The tests are carried out via a buccal swab before being sent to an external partner laboratory. The results are then sent to the customer by e-mail.
GTG Chairman and CEO Simon Morriss said the acquisition was “an excellent strategic fit” for the company, supporting its continued testing expansion in its target markets.
âWe look forward to working closely with the AffinityDNA team to capitalize on our business synergies,â Mr. Morriss said.
There will be no changes to current AffinityDNA employees, with key management to be retained in an advisory role.
GTG shares are flat at 0.3 cents at 2:36 p.m. AEDT today.