Novolog acquires 75% of Pronto Diagnostics for about ILS 11 million

The transaction includes an additional contingent payment of up to ILS 4 million

Pronto Diagnostics operates clinical laboratories for human molecular genetic diagnostics, onco-genetic tests, pregnancy tests, such as NIPT, genetic sequencing tests, and viral and bacterial analyses, and engages in sales of kits and reagents for molecular genetic diagnostics

The medical laboratory segment in general, and genetics laboratories in particular, is enjoying an accelerated growth trend and constitutes a critical tool for diagnosing, preventing and treating diseases

Pronto Diagnostics supplements Novolog’s basket of services in its healthcare division and is synergetic to the activities of AML’s laboratory

Novolog is acquiring 75% of the shares of Pronto Diagnostics for a total of about ILS 11.1 million. The transaction includes an additional contingent payment of up to ILS 4 million, which is based on the results and mechanisms defined in the agreement.

The agreement for the acquisition of 75% of Pronto Diagnostics’ shares specifies that the seller will continue holding the remaining 25% of the shares and will continue holding office as Pronto Diagnostics’ CEO for a predefined period. Call and put mechanisms are also specified, which are customary in transactions of this type.

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Eran Taus, Novolog’s CEO: “We are pleased to announce a transaction for the acquisition of 75% of the shares of Pronto Diagnostics, which operates clinical laboratories for genetic sequencing diagnostics and a variety of additional tests. This acquisition is another milestone in the fulfillment of Novolog’s strategy for strengthening its standing as a leader in the healthcare sector, while expanding its basket of diagnostic services to its customers. We intend to take action to contribute to Pronto Diagnostics’ growth by expanding the services and entering additional collaborations, while utilizing the synergies between its operations and those of AML’s laboratory and the activities in our healthcare division.”

The agreement will be consummated shortly after receiving the requisite regulatory approvals.

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About Novolog Group

Novolog Group engages in healthcare services. The company was founded in 1966 and currently

employs about 800 employees. Novolog’s shares have been listed on the Tel-Aviv Stock Exchange

since 2017. Novolog operates through three divisions:

Logistics Division – offering complex logistics services and supplementary services in the

fields of pharmaceuticals, medical devices and clinical trials;

Healthcare Services Division – High quality medical care based on innovation, compassion, and personalized care

Digital Division – offering medical information and services to patients and physicians.

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http://www.novolog.co.il

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https://il.linkedin.com/company/novolog

IR: Jonathan Raz jonathan@km-ir.co.il

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