Indegene Ireland Arm to Acquire UK-Based MJL Group for GBP 3.4 Million

Indegene Ireland, a wholly owned subsidiary of Indegene Ltd., has entered into an agreement to acquire MJL Communications Group Ltd. and its subsidiary MJL Advertising Ltd. The acquisition will be executed on a debt-free, cash-free basis, for a total consideration not exceeding GBP 3.4 million. This includes purchase consideration, earnouts, bonuses, and adjustments for net working capital.

As of 12:39 PM on March 26, Indegene share price is trading at ₹546.15, down 2.61% for the day, 8.37% higher over the past month, but down 17.71% in the last six months.

Nature of Transaction

This is a 100% acquisition of the MJL Group. Indegene Ireland will acquire all outstanding shares of MJL Communications Group Ltd., resulting in full ownership. The consideration will be paid entirely in cash, with some of it deferred based on performance and milestone achievements. 

The transaction does not fall under related party transactions, and there is no promoter or group company interest involved.

Timeline and Purpose

The acquisition is expected to be completed on or before March 31, 2025. There are no governmental or regulatory approvals required for this transaction.

The acquisition is aimed at supporting Indegene Ireland’s business expansion, as per the filing. It is intended to help strengthen the company’s healthcare communications capacity in the UK and European Union regions.

About MJL Group

MJL Communications Group Ltd. and MJL Advertising Ltd. are healthcare communications agencies based in the United Kingdom. The group is into brand creation, omnichannel campaigns, education initiatives, and patient support communications. MJL was founded in 1982 and is headquartered in England.

The group’s unaudited revenue for the calendar year 2023 was GBP 1.72 million. For the previous year, 2022, it reported GBP 2.02 million, and the provisional revenue for 2024 stands at GBP 1.92 million.

Conclusion

The investment in Indegene Ireland for this acquisition was previously approved by Indegene’s Board of Directors to support the subsidiary’s capital expenditure requirements.

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