Contract Research Organisation hVIVO plc (AIM: HVO) announced on Wednesday that it has acquired two Clinical Research Units from CRS Clinical Research Services Management GmbH for EUR10m in cash, marking its first strategic acquisition. The move diversifies the company's services to include in-patient Phase I and II clinical trials across a broader therapeutic range and establishes a significant presence in Europe with 120 beds in Mannheim and Kiel.

The acquisition, funded from hVIVO's existing cash resources of GBP44.2m as of 31 December 2024, is expected to be earnings accretive by 2026. CRS recorded unaudited revenues of EUR19.9m in 2024 and EUR18.6m in 2023.

Revenue guidance for 2025 stands at GBP73m, with EBITDA margins anticipated in the mid-to-high teens. The integration of CRS is expected to bolster cross-selling opportunities, expand client offerings, and position the group for significant growth in 2026.

hVIVO's contracted order book reached GBP67m by 31 December 2024, excluding its recently announced pivotal Phase 3 HCT for ILiAD Biotechnologies, expected to be the company's largest human challenge trial to date.