Laser technology company LUMIBIRD revealed on Monday that it has entered into an agreement to acquire a laser and ultrasound business for AUD100m from Australian company Ellex Medical Lasers Limited.

According to the company, this acquisition will create a world leader for laser and ultrasound technologies for the diagnosis and treatment of ocular diseases. The new Lumibird's Medical branch is targeting EUR90m of revenues by 2021, with an EBITDA margin of 15%.

Headquartered in Adelaide, Australia, Ellex designs, develops, manufactures and sells products that help eye surgeons around the world to effectively and efficiently treat eye disease. It has ophthalmic lasers and devices that treat glaucoma, retinal disease primarily caused by diabetes, secondary cataract and vitreous opacities, as well as age-related macular degeneration. The assets acquired include the Ellex brand, the R&D and production site in Adelaide and the commercial subsidiaries based in Australia, Japan, the US, France and Germany.

The acquisition provides Lumibird Group with all of Ellex's laser and ultrasound activities, with pro forma revenues of AUD65.5m, while the laser and ultrasound segment recorded a 9.5m EBITDA, excluding head office costs, for the year ended 30 June 2019, respectively.

In addition, the acquisition will be submitted to Ellex's shareholders for approval at a general meeting to be held during the first half of 2020, with completion to occur mid-2020. The board of directors of both the companies have approved the acquisition transaction.

(USD1=AUD1.44560)