Healius agrees to sell Agilex Biolabs to Novotech for $160 million enterprise value
Healius Limited (ASX: HLS) has entered a binding agreement to sell its wholly owned subsidiary Agilex Biolabs Pty Ltd to a subsidiary of Novotech Health Holdings Pte Ltd for an enterprise value of A$160 million. The transaction is expected to generate net cash proceeds of approximately $155 million after separation and transaction costs, subject to closing adjustments.
The deal represents a multiple of 19.8x Agilex Biolabs’ FY2026 EBITDA on a pre-AASB16 basis, reflecting an FY26 EBITDA of $10.7 million less a $2.6 million AASB 16 property lease impact. Healius does not expect to incur any tax in relation to the transaction. Completion is anticipated during H2 FY2027, subject to regulatory approvals.
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Deal structure and terms at a glance
The key transaction parameters are summarised below.
| Enterprise Value | Net Cash Proceeds | EBITDA Multiple (pre-AASB16) | Tax Impact | Expected Completion |
|---|---|---|---|---|
| A$160 million | ~$155 million (after separation and transaction costs, subject to closing adjustments) | 19.8x FY2026 EBITDA | No tax expected | H2 FY2027 (subject to FIRB and ACCC approval) |
Strategic rationale: sharpening focus on core pathology
The sale was not a reactive decision. As announced in May 2026, Healius commenced a formal sale process in response to several unsolicited approaches from credible parties, with management determining that a disposal at a sufficiently attractive price would unlock shareholder value while supporting greater focus on the core Pathology business.
The formal sale process for Agilex Biolabs was initiated in May 2026 following multiple unsolicited approaches from credible parties, with Healius engaging UBS to manage the process and flagging a formal update by August 2026.
Agilex Biolabs operates as a standalone business under Healius, and the announcement confirms the sale will not impact Healius’ Pathology operations. On completion, Healius is expected to be in a net cash position. The company stated it will continue to assess its capital requirements and will provide further details on its intentions in relation to the use of sale proceeds closer to the time of completion.
Paul Anderson, Managing Director & CEO, Healius
“The sale of Agilex Biolabs delivers attractive value for Healius shareholders. The sale provides customers and team members of Agilex Biolabs with the opportunity to join an established and global business in Novotech, which has expertise in providing services to major biotechnology and pharmaceutical customers.”
Paul Anderson, Managing Director & CEO, Healius
“Healius will continue to execute on its strategies to grow and improve its core pathology business, which delivers critical diagnostic services to millions of Australians each year.”
Who is Novotech? Understanding the buyer
Novotech is a leading clinical research organisation (CRO) providing a full suite of services across the drug development value chain, running trials across all phases and sizes. The buyer brings substantial global scale to the acquisition.
Key facts about Novotech:
- More than 1,000 customers since 2021
- Approximately 2,850 employees
- 39 offices across APAC, North America, and Europe
- Majority controlled by private investment funds affiliated with TPG
The acquisition of Agilex Biolabs is expected to bolster Novotech’s expertise in Australia, bringing together bioanalytical science and research capabilities with Novotech’s existing drug development services. The buyer’s global footprint and TPG backing lend credibility to the 19.8x EBITDA multiple Healius achieved, reflecting the quality of the asset being sold.
Dr Anand Tharmaratnam, Chief Executive Officer, Novotech
“Agilex has built an outstanding scientific reputation over many years. This acquisition bolsters Novotech’s expertise in Australia, bringing together leading bioanalytical science and research capabilities to deliver innovative and ground-breaking research. We look forward to welcoming the Agilex team.”
What happens next: conditions, timeline, and capital priorities
Completion of the transaction remains subject to the satisfaction of a number of conditions. The key steps on the path to closing are:
- Approval by the Foreign Investment Review Board (FIRB)
- Approval by the Australian Competition & Consumer Commission (ACCC)
- Satisfaction of other customary conditions
- Expected completion: H2 FY2027
UBS Securities Australia Limited is acting as financial adviser to Healius, and Mallesons is acting as legal adviser, signalling an institutional-grade approach to transaction management.
Post-completion, Healius is expected to hold a net cash position. The company has indicated it will assess its capital requirements and provide further detail on the intended use of sale proceeds closer to completion. No specific allocation of proceeds has been disclosed at this stage.
The transaction, if completed as outlined, would leave Healius as a focused pathology business with a strengthened balance sheet and a clear strategic runway centred on delivering diagnostic services across Australia.
The Ramsay Health Care pathology agreement, effective 1 July 2026 and covering 13 hospitals across four states, illustrates the kind of contracted revenue base Healius is leaning into as it consolidates around its core diagnostic services offering.
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