Magnetica, Scientific Magnetics, and TecMag announced merging to the London Stock Exchange this morning, which will generate a new MRI original equipment manufacturer.
FREMONT, CA: Magnetica, an Australian medtech and engineering company specializing in next-generation Magnetic Resonance Imaging (MRI) technologies, merges with Scientific Magnetics - a UK-based business that designs, manufactures, tests, and deploys 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 deal will develop 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 commercialization of existing prototype products created by the individual entities to date.
The merger completion is subject only to Magneticas shareholder approval at an upcoming General Meeting on 29 January. The agreement is expected to see Avingtrans PLC (Avingtrans) - which owns a significant stake in Scientific Magnetics – take over the majority shareholding in the new business, which will continue to be known as Magnetica. The integrated business will become a vital part of the Avingtrans Medical and Industrial Imaging division moving forward. Scientific Magnetics and Tecmag will become wholly-owned subsidiaries of Magnetica.
By combining the expertise of Magnetica, Scientific Magnetics, and Tecmag in a single entity, there is an interesting opportunity to become a key 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 the expertise and track records in the development and manufacturing of Magnetic Resonance subsystems. The combination of assets, knowledge, and supply chains will allow new products to be offered on a globally-competitive basis.
Magnetica will focus on smaller, lighter-weight superconducting MRI systems for dedicated applications such as extremity imaging. Delivering such compact superconducting MRI systems to the market will let clinicians worldwide use essential imaging tools in new locations, closer to the patient point-of-care, without compromising the quality of images obtained from whole-body MRI systems.