Specialty diagnostics company Precipio (NSDQ:PRPO) announced today that it completed the non-cash acquisition of, among other transactions, the customer base of Poplar hematopathology division called OncoMetrix.
The purchase involves no exchange of cash or equity, so it won’t provide a non-dilutive impact to shareholders, according to a news release. Precipio noted that successful implementation without disproportionate impact from the COVID-19 outbreak will result in revenue growth, gross margin and cash flow.
New Haven, Conn.-based Precipio projects that its revenues will more than double with the hematopathology business increase, while also doing better than double in terms of gross margin and reducing cash burn.
“We are delighted to complete this transaction and partner with Precipio for the hematopathology business, enabling us to focus on our other core businesses”, Poplar CEO James Sweeney said in the news release. “We look forward to continued collaboration with Precipio in other areas of our partnership”.
“While every absorption of a business is challenging, this transaction is an exact fit with current Precipio operations,” added Precipio CEO Ilan Danieli. “We are excited to work with the Oncometrix team and continue to provide their customers and patients with outstanding quality and service. We, too, look forward to a continued fruitful partnership with the Poplar team”.
A previous announcement of the agreement between the companies said that three OncoMetrix sales representatives will transition to Precipio as part of the deal. Precipio also plans to offer Poplar’s solid-tissue pathology services, while Poplar can now offer Precipio’s hematopathology services.
