[PRESS RELEASE] Trio of MedTech engineering businesses plan to merge – Avingtrans PLC will take majority stake
Date: Tuesday 5 January 2021
Magnetica, an Australian MedTech and engineering company specialising in next-generation Magnetic Resonance Imaging (MRI) technologies, plans to merge with Scientific Magnetics – a UK-based business that designs, manufactures, tests and installs bespoke superconducting magnet systems – and its US subsidiary Tecmag, which manufactures instrumentation for Nuclear Magnetic Resonance (NMR), Nuclear Quadrupole Resonance (NQR) and MRI markets.
The merger completion is subject only to Magnetica’s shareholder approval at an upcoming General Meeting on 29 January.
The deal is expected to see Avingtrans PLC (Avingtrans) – which owns a majority stake in Scientific Magnetics – acquire the majority shareholding in the new business, which will continue to be known as Magnetica. The combined business will become the key part of Avingtrans’ Medical and Industrial Imaging division moving forward. Scientific Magnetics and Tecmag will become wholly-owned subsidiaries of Magnetica.
The deal will create a Combined Business with total net assets of approximately £5.3 million, on a proforma basis, and will also see Avingtrans invest up to £3.2m in the newly-formed business, to fund new MRI product development and ongoing commercialisation of existing prototype products developed by the individual entities to date.
Steve McQuillan, CEO of Avingtrans, said: “We believe this merger offers real potential to accelerate our planned move up the value chain in what is a highly-specialised and integrated, international medical imaging market.
“By combining the expertise of Magnetica, Scientific Magnetics and Tecmag in a single entity, there is an exciting opportunity to become a leading MRI systems integrator for a variety of niche markets, as well as the prospect of increasing accessibility to high-quality medical imaging around the world.”
All three companies have expertise and track records in the development and manufacturing of Magnetic Resonance subsystems, and the combination of assets, knowledge and supply chains will enable new products to be offered on a globally-competitive basis.
Unlike traditional large and heavy whole-body MRI systems, Magnetica will focus on smaller, lighter-weight superconducting MRI systems for dedicated applications such as extremity imaging. This is likely to include cryogen-free models, which require significantly lower infrastructure costs than traditional MRI machines, making them suitable for use in a variety of non-traditional locations.
Delivering such compact superconducting MRI systems to the market will enable clinicians around the world to use essential imaging tools in new locations, closer to the patient point-of-care, without compromising the quality of images traditionally obtained from whole-body MRI systems.
Duncan Stovell, CEO of Magnetica, said: “The proposed merger with Scientific Magnetics and Tecmag will not only expand our product portfolio, but also provide access to core intellectual property, design specifications and key OEM in-house magnet manufacturing capability to allow us to move up the value chain.
“Avingtrans has developed a strong reputation for successfully investing in and growing engineering businesses in highly-engineered, niche markets. When they outlined their vision for the newly-merged company to our Board, we were unanimous in our agreement that they are the right partner to take the business to the next level and become a disruptive new force as an OEM MRI system provider.”
Avingtrans designs, manufactures and supplies original equipment, systems and associated aftermarket services to the energy, medical and industrial markets worldwide.
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Designs and manufactures superconducting magnet systems and associated cryogenic systems for a variety of markets including MRI and provides service and support for Nuclear Magnetic Resonance instruments.
Designs, manufactures, tests and installs instrumentation, including full consoles, system upgrades, and solid-state probes, mainly for Magnetic Resonance Imaging (MRI) and Nuclear Magnetic Resonance (NMR) systems.
Magnetica Limited specialises in the development of next-generation MRI technologies, including dedicated extremity MRI systems and MRI system components. Based in Brisbane, Australia since its inception in 2005, Magnetica™ has remained at the forefront of MRI systems technology, successfully designing and commercialising a 1.5T extremity MRI superconducting magnet that is now the heart of over two hundred MRI systems worldwide.
We are enabling a world where accurate and compact MRI Systems unlock opportunities for enhanced clinical diagnostic imaging services closer to the patient point-of-care. Our aim is to design and develop MRI systems and components that unlock new market applications, enhance imaging capability, increase workflow efficiency, and provide greater patient comfort.
Through a continuing strategic partnership with The University of Queensland, Magnetica has developed a 3T extremity superconducting asymmetric magnet, Gradient Coil and RF Coils. Magnetica has successfully built and tested an integrated 3T extremity MRI system, demonstrating clinical-quality imaging.
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