Transformational and accretive acquisition
adds significant scale to INVO's current operations
Contributes over $5 million in incremental annual revenue as well
as positive net income and cash flows
First significant transaction establishing
acquisitions as key aspect of INVO's commercial strategy, in
addition to building new INVO Centers
SARASOTA, Fla. and MADISON, Wis., Aug. 11,
2023 /PRNewswire/ -- INVO Bioscience, Inc. (Nasdaq:
INVO) ("INVO" or the "Company"), a healthcare services fertility
company focused on expanding access to advanced treatment worldwide
with its INVOcell® medical device and the intravaginal culture
("IVC") procedure it enables, today announced it has closed the
previously announced acquisition of Wisconsin Fertility Institute.
The acquisition provides operational scale, positive cash flow and
complements the Company's new-build INVO Center strategy.
The Madison-based fertility
center primarily offers conventional IVF procedures having
generated approximately $5.1 million
in revenue and net income of $1.6
million for the trailing 12-month period ended March 31, 2023. INVO will look to further
expand the center through the introduction of the IVC procedure as
an added service offering to patients.
Wisconsin Fertility Institute, led by internationally renowned
and well-respected fertility expert, Dr. Elizabeth Pritts, is one of the state's
preeminent fertility centers, having helped to welcome over 5,000
babies since opening its doors in 2007 with approximately 550
conventional IVF procedures completed in 2022.
"The acquisition of Wisconsin Fertility Institute accelerates
the transformation of INVO to a healthcare services company, with
an ability to leverage our unique and innovative INVOcell device to
help democratize the fertility industry," commented Steve Shum, CEO of INVO. "The acquisition
immediately adds scale and positive cash flow to our operations,
with incremental growth expected to be driven at the clinic through
the synergistic introduction of our INVOcell solution. We are
extremely excited to have now closed this important acquisition and
look forward to incorporating the clinic within our operations
moving forward."
INVO's innovative device, the INVOcell, allows fertilization and
early embryo development to occur in vivo within
the woman's body. Wisconsin Fertility Institute joins INVO's
expanding list of fertility clinics, including operating clinics in
Atlanta (Bloom Fertility),
Birmingham (Innovative Fertility Specialists) and Monterrey, Mexico (Positib Fertility), as well
as future clinics under development.
Financial Terms of Acquisition
The purchase price of the acquisition is $10 million payable over a three-year period.
There is an initial $2.15 million due
in cash at closing (net of a $350,000
holdback), with subsequent $2.5
million payments due annually for the following three years.
At the discretion of the sellers, subsequent payments may be paid
in cash or in shares of INVO common stock. Wisconsin Fertility
Institute becomes a wholly owned subsidiary, and its financial
statements will be consolidated with those of INVO.
About INVO Bioscience
We are a healthcare services fertility company dedicated to
expanding the assisted reproductive technology ("ART") marketplace
by making fertility care accessible and inclusive to people around
the world. Our commercialization strategy is focused on the opening
of dedicated "INVO Centers" offering the INVOcell® and IVC
procedure (with three centers in North
America now operational), the acquisition of US-based,
profitable in vitro fertilization ("IVF") clinics and the sale and
distribution of our technology solution into existing fertility
clinics. Our proprietary technology, INVOcell®, is a revolutionary
medical device that allows fertilization and early embryo
development to take place in vivo within the woman's body. This
treatment solution is the world's first intravaginal culture
technique for the incubation of oocytes and sperm during
fertilization and early embryo development. This technique,
designated as "IVC", provides patients a more natural, intimate,
and more affordable experience in comparison to other ART
treatments. We believe the IVC procedure can deliver comparable
results at a fraction of the cost of traditional IVF and is a
significantly more effective treatment than intrauterine
insemination ("IUI"). For more information, please
visit www.invobio.com.
Safe Harbor Statement
This release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
The Company invokes the protections of the Private Securities
Litigation Reform Act of 1995. All statements regarding our
expected future financial position, results of operations, cash
flows, financing plans, business strategies, products and services,
competitive positions, growth opportunities, plans and objectives
of management for future operations, as well as statements that
include words such as "anticipate," "if," "believe," "plan,"
"estimate," "expect," "intend," "may," "could," "should," "will,"
and other similar expressions are forward-looking statements. All
forward-looking statements involve risks, uncertainties, and
contingencies, many of which are beyond our control, which may
cause actual results, performance, or achievements to differ
materially from anticipated results, performance, or achievements.
Factors that may cause actual results to differ materially from
those in the forward-looking statements include those set forth in
our filings at www.sec.gov. We are under no obligation
to (and expressly disclaim any such obligation to) update or alter
our forward-looking statements, whether as a result of new
information, future events or otherwise.
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SOURCE INVO Bioscience, Inc.