Novacyt S.A. (NVYTF) Discusses Acquisition of Southern Cross Diagnostics and Strategic Rationale Prepared Remarks Transcript

SA Transcripts159.24K FollowersFollow5ShareSaveCommentsPlay Earnings CallPlay Earnings Call Novacyt S.A. (NVYTF) Discusses Acquisition of Southern Cross Diagnostics and Strategic Rationale April 8, 2026 2:00 AM EDT Company Participants Lyn Rees - CEO & Executive DirectorSteve Gibson - CFO, Company Secretary & Director Presentation Lyn ReesCEO & Executive Director Novacyt is a global provider of diagnostic tests and services. For anyone that knows the global marketplace will understand that Australia, specifically as a region, has been fast growing over the last couple of years. So when I looked at the acquisition of Southern Cross Diagnostics, the first thing I look at is fundamentally, it supports our corporate objectives, which are around growth, getting closer to profitability and product portfolio expansion. We've known Nick, the owner of this business, because he's been our distributor for a long number of years. So there was a good cultural alignment between the 2 organizations, and the business has been growing at quite a rate over the last couple of years as well. So clearly, a successful entity. When we looked at all the various pieces on the table here, this deal gave us -- well, first of all, it's accretive. So it brings us profitability from day one. Secondly, it gives us a wider range of portfolio of products. And thirdly, it gives us customers, so regional growth. So when you look at those things, it was quite an easy decision to do this deal. Southern Cross supply products into the serology, molecular and general lab space. So they have a breadth of products and customers in region. Key customer would include Sonic Healthcare, the largest provider of diagnostic testing services in the Australian market, but they also work with a wide range of hospitals and private health screening services there. I think the opportunity for us is twofold. Number one, when you work