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EQT To Buy Dutch Life Sciences Investment Firm LSP For EUR 450 Mln - Quick Facts

EQT AB (EQT) announced Wednesday that it has signed an agreement to acquire Life Sciences Partners or LSP, a European life sciences venture capital firm.

The upfront consideration amounts to 450 million euros on a cash- and debt free basis, comprising of 25 percent cash and 75 percent new EQT AB publicly traded shares, with a potential additional earn-out payment of 25 million euros.

The transaction is is expected to close in Q1 2022, subject to customary closing conditions, including antitrust, regulatory and certain fund investor clearances. The deal will be accretive to EQT AB's earnings in 2022.

EQT AB will acquire 100 percent of the LSP management company and 20 percent of the right to carried interest in select LSP funds. In addition, EQT AB will be entitled to 35 percent of the carried interest of future funds, which is in line with existing EQT policies.

Amsterdam, the Netherlands -based LSP has about 2.2 billion euros of assets under management and a team of 34 professionals. Over the past two decades, LSP has invested in over 150 life sciences companies. The entire LSP team, including all partners and employees, will join EQT.

LSP is expected to generate around 37 million euros in revenues and around 24 million euros in EBITDA during 2021. The proposed consideration is expected to equate to a mid-teens EBITDA multiple on a run-rate basis at completion.

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