Australian healthcare technology and services company Resonance Health has agreed to acquire 100% of clinical research centre TrialsWest for a total consideration of A$8m ($5.20m).

This move represents a strategic expansion into clinical trial operations for Resonance Health and lays the groundwork for future growth in the sector.

The deal comprises a A$4m upfront payment in cash, as well as a contingent earnout of up to $4m, based on TrialsWest achieving an EBITDA of $1.33m in the financial period up to and including FY 2026.

Established in 2012, TrialsWest collaborated with various global pharmaceutical and biotechnology companies, helping them to advance new medicines and vaccines.

It is anticipated to contribute A$2m in revenue and A$0.67m in EBITDA annually, based on its projected full-year performance for FY 2024.

Subject to meeting specific conditions, the deal is anticipated to conclude in the last quarter of FY 2024.

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TrialsWest founders Dr Helen Pavitt, Michelle Davies, and professor Peter Bremner will continue to remain in key leadership roles for the next three years, following the closing of the deal.

This acquisition aligns with Resonance Health’s strategy to intensify its focus and commercial presence in the clinical trial ecosystem.

The company aims to leverage its deep-domain expertise to deliver enhanced value to its customers across the globe.

This strategic move is projected to drive year-on-year revenue growth and serve as a foundation for organic and acquisitive growth in revenue and profits in the coming years.

Resonance Health also plans to expand TrialsWest by adding new clinical trial sites and pursuing complementary acquisitions and will finance the acquisition through cash reserves and a new debt facility.

Resonance Health CEO Andrew Harrison said: “We are delighted to be welcoming TrialsWest into the Resonance Health family.

“TrialsWest has built a truly great business and its contributions to Resonance Health will be highly valued, both with respect to work already underway and for future clinical trial work for our expanding base of global pharmaceutical customers.”