Ever wondered if your brother is really your brother? Or what breeds make up your dog (who was advertised by the rescue as ‘mixed breed blend’, I kid you not)?
DNA testing has all the answers you seek, and with the technology becoming cheaper and scalable, direct-to-consumer DNA testing kits are now readily available.
Leaders in genomics-based testing, Genetic Technologies (ASX: GTG) is one of the behind the scenes companies making health, wellness and serious disease testing possible. The Company is now expanding their offering from their core business of predictive DNA testing for oncology, cardiovascular and metabolic disease with multiple direct-to-consumer DNA testing brands.
Already established in Australia with EasyDNA which they acquired in July 2021, GTG has decided to tackle the European, UK and US markets with the acquisition of AffinityDNA.
The synergies are clear, with AffinityDNA providing a nearly identical service to EasyDNA, offering everything from paternity and relationship testing to pet testing and health testing. The Business sells these tests via online marketplaces such as Amazon and has seen significant revenue growth over the past two years.
“The acquisition is an excellent strategic fit, supporting the ongoing expansion of our testing across our target markets worldwide,” said GTG CEO Simon Morriss. “We are looking forward to working closely with the AffinityDNA team to capitalise on our commercial synergies.”
GTG will deploy a total of £555,000 (AUD $918,000) for AffinityDNA with 50% payment upon completion and the remainder one year from the completion date, assuming AffinityDNA reaches certain financial performance milestones.
The strategic acquisition will provide another avenue for revenue growth where GTG has seen significant uplift in the year to date, almost 500% in fact.
The Company remains well capitalised, reporting a cash balance of $12.8 million at the end of the March quarter.
Samantha Freidin is a business journalist at Emerald Financial whilst also completing a Masters of Marketing and Digital Communications at Monash University.
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