Notes for P&L
All amounts in SEKm unless otherwise stated
Note 32 Acquisitions within business areas
| Acquisitions | Country | Date of acquisition | Net sales, SEKm¹ | Number of employees¹ | Business area |
|---|---|---|---|---|---|
| Emmat Medical Ltd | Great Britain | September, 2023 | 28 | 4 | Medtech |
| BonsaiLab | Spain | July, 2024 | 90 | 13 | Labtech |
| ¹ Refers to conditions at the time of acquisition on a full-year basis. | |||||
| According to the acquisition analyses, the acquisitions carried out during financial year 2024 were as follows: | |||
|---|---|---|---|
| Fair value | |||
| Intangible non-current assets | 56 | ||
| Other non-current assets | 0 | ||
| Inventories | 7 | ||
| Other current assets | 32 | ||
| Deferred tax liability/tax asset | -14 | ||
| Other liabilities | -25 | ||
| Acquired net assets | 56 | ||
| Goodwill | 75 | ||
| Consideration¹ | 131 | ||
| Less: cash and cash equivalents in acquired businesses | -10 | ||
| Contingent consideration not yet paid | -62 | ||
| Effect on the Group’s cash and cash equivalents | 59 | ||
| ¹ The consideration is stated excluding acquisition expenses. | |||
| According to the acquisition analyses, the acquisitions carried out during financial year 2023 were as follows: | |||
|---|---|---|---|
| Fair value | |||
| Intangible non-current assets | 4 | ||
| Other non-current assets | 1 | ||
| Inventories | 1 | ||
| Other current assets | 3 | ||
| Deferred tax liability/tax asset | -1 | ||
| Other liabilities | -3 | ||
| Acquired net assets | 5 | ||
| Goodwill | 7 | ||
| Consideration¹ | 12 | ||
| Less: cash and cash equivalents in acquired businesses | -1 | ||
| Contingent consideration not yet paid | -5 | ||
| Effect on the Group’s cash and cash equivalents | 6 | ||
| ¹ The consideration is stated excluding acquisition expenses. | |||
The acquisition analysis of BonsaiLab is preliminary. The acquisition analysis is preliminary as the valuation of acquired assets and liabilities are being finalised.
The purchase price for this year's acquisition amounts to SEK 131 million (12), whereof SEK 75 million (7) was allocated to goodwill and SEK 56 million (4) to other intangible assets. The consideration consists of cash payment and contingent consideration. The transaction costs for the acquisitions with a acquisition date during the 2024 financial year amounted to SEK 2 million (0) and are recognised in selling expenses.
The outcome of contingent considerations depends on the results achieved in the companies and has a set maximum level. At the acquisition date for the acquisition made during the financial year, contingent considerxation was measured at fair value and amounted to SEK 62 million which is approximately 80 percent of the maximum outcome. For historical acquisitions where the purchase price has not yet been paid, the estimated fair value of contingent considerations at the end of the reporting period amounts to SEK 39 million, which constitutes 100 percent of the maximum outcome.
The values allocated to intangible assets, such as supplier relationships, were assessed at the discounted value of future cash flows. The amortisation period is determined by estimating the annual decrease in sales attributable to each asset.
Supplier relationships are generally amortised over a period of 10 years. The goodwill that arose in connection with the acquisitions relate to the Group's position in the current market for each acquisition which is expected to be strengthened and to the knowledge gained in the acquired companies.
The effect of the acquisition, on consolidated net sales was SEK 57 million (8), while the effect on EBITA was SEK 12 million (1), operating profit was SEK 9 million (1) and after-tax profit for the year was SEK 7 million (0). Had the acquisition been completed on January 1, 2024, the impact would have been approximately SEK 111 million (11) on consolidated net sales, SEK 23 million (1) on EBITA, about SEK 17 million (1) on operating profit, and about SEK 13 million (1) on profit after-tax.
Contingent consideration amounting to SEK 45 million has been paid during the financial year regarding BioConnect, Funksjonsutstyr, O'Flynn, JKLab and Emmat Medical Ltd, which were acquired in previous years.
The acquisition analysis for the companies acquired up to the end of December 2023 has now been finalized. No significant adjustments have been made to the calculations.