Novacyt (LSE:NCYT) has entered into an agreement to acquire Australian distributor Southern Cross Diagnostics for an upfront cash consideration of AUD$8.5 million, providing the company with direct exposure to Australia’s expanding clinical diagnostics sector and established relationships with major pathology customers.
Southern Cross Diagnostics has been a long-term distribution partner for Novacyt’s Yourgene Health testing portfolio and has experienced strong recent growth, generating approximately £6.7 million in revenue in FY25 alongside solid profitability. The transaction is expected to be immediately earnings-accretive and will eliminate around £2.0 million of intercompany sales previously recorded between the two businesses.
The acquisition supports Novacyt’s broader strategy to accelerate revenue expansion, progress toward breakeven profitability and widen market access across Australia and the wider Asia-Pacific region. Growth opportunities are expected to centre on products including cystic fibrosis and DPYD genotyping tests. Founder and CEO Nick Thliveris will remain with the business, while his family trust has committed to invest up to AUD$0.8 million in Novacyt shares, aligning long-term incentives. An additional performance-based earnout of up to AUD$16.5 million reflects expectations for continued scaling within a diagnostics market projected to grow at a compound annual rate of roughly 8.5% through 2030.
More about Novacyt
Novacyt S.A. is an international molecular diagnostics company listed on Euronext Growth and AIM, specialising in genomic medicine solutions. The group develops, manufactures and commercialises molecular assays, PCR-based diagnostics and instrumentation delivering integrated testing workflows across human health, animal health and environmental applications, with key focus areas including reproductive health, precision medicine and infectious disease testing.
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