Irish healthcare app founders secure € 28m from sale of 3D4Medical

Healthcare app developer 3D4Medical has been sold to publisher Elsevier in a deal that will bring in nearly € 28 million to its Irish founders.

No full price was disclosed for the deal, but industry sources said Elsevier paid some $ 50.6 million (€ 45.9 million) for the Irish company.

John Moore, who founded the company in 2004, will earn more than 24 million euros from the sale of the award-winning 3D medical technology company in which he has a 54% stake. Its co-founder, Niall Johnston, will receive nearly 3.5 million euros for his stake of just under 8%.

Life sciences group Malin, which paid $ 16 million for a 38% stake in mid-2015, said it received more than € 17 million for its stake.

Dublin-based 3D4Medical has 75 employees.

Mr Moore said the deal with Elsevier made sense for both parties.

“We’re in 300 universities and we’re very proud of that because they include Cambridge and most of the Ivy League colleges, but Elsevier is in 10,000 and so we figured if we wanted to take it to another level, the synergy is perfect. We thought it was a natural progression to open up this massive distribution channel to us and for their part, they want to be able to use our technology to be able to bring flat images to life.

“A lot of students don’t learn by reading now and on top, unlike the printed page which can only show one image, our 3D visualization presents multiple anatomical images that we can play with, which from the point of view learning view, is priceless. Mr. Moore added.

Downloads

3D4Medical has achieved over 25 million downloads in its product suites and has been ranked # 1 medical app on the Apple, Microsoft and Google app stores in 160 countries.

The company, whose flagship product is called Complete Anatomy, reported $ 10 million in revenue last year and recorded a pre-tax loss of $ 560,000. Mr Moore said the company now has positive ebitda. He added that he was especially proud of the fact that after switching to a Software-as-a-Service (Saas) subscription model last year, the number of subscribers has increased from 15,000 to 80,000. currently.

Mr. Moore said he intends to stay with 3D4Medical while continuing to pursue other business interests.

Malin, who has seen his share price drop 60% since its IPO in 2015, said the amount he received from the sale of his stake represented a 10% premium on the value of his stake. at the end of June. .

“The net proceeds we will receive from this transaction will strengthen our capital, reducing our outstanding EIB debt, as we look forward to several clinical milestones in our priority asset pool in 2020,” said Darragh Lyons, Managing Director of Malin .


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