Kromek Group plc (AIM: KMK) has entered into multi-year agreements with Siemens Medical Solutions USA, Inc. (“Siemens Healthineers”) to provide know-how and use rights of IP on a non-exclusive basis, and furnaces and related services, under an Enablement Agreement and Patent Licensing Agreement, and to supply CZT-based detector tiles (the “Supply Agreement”) (together with the Enablement and Patent Licensing Agreements, the “Agreements”) to enable the production of CZT detectors for SPECT application (single-photon emission computed tomography).
Under the Enablement Agreement, the Group will be paid a total of $37.5m in cash in four installments over a four-year period, with the first installment of $25.0m to be received after signing. Over a four-year period, Kromek will transfer 15 of its existing 174 furnaces for CZT production to Siemens Healthineers and provide Siemens Healthineers with all know-how, IP and related services for CZT-based SPECT detector production. The Enablement Agreement, however, does not restrict Kromek from seeking other potential collaborations, including similar ventures with other original equipment manufacturers (OEMs) in advanced imaging markets. As the largest independent producer and supplier of CZT, Kromek intends to continue producing CZT for the SPECT and CT markets, utilizing the remaining 159 furnaces it owns.
Kromek Group is a leading developer of radiation detection and bio-detection technology solutions for the advanced imaging and CBRN detection segments. Headquartered in County Durham, UK, Kromek has manufacturing operations in the UK and US, delivering on the vision of enhancing the quality of life through innovative detection technology solutions.
Siemens Healthineers is a leading medtech company with over 71,000 global employees pioneering breakthroughs in healthcare. The company is principally active in the areas of imaging, diagnostics, cancer care and minimally invasive therapies, augmented by digital technology and artificial intelligence.
EC M&A acted as exclusive financial advisor to Kromek Group on this transaction.