Afya Limited Announces Cliquefarma’s Acquisition

Rhea-AI Summary

Afya Limited (Nasdaq: AFYA) has acquired 100% of Cliquefarma, a Brazilian healthtech firm that allows users to compare prices of prescription drugs and healthcare products from over 5,000 pharmacies. The acquisition aims to enhance Afya's Digital Prescription services and leverage Cliquefarma's significant web traffic of 20 million visitors and R$ 43.2 million GMV for 2020, representing 52.9% growth from the previous year. The purchase price is R$ 19 million, mainly in cash, with an additional earn-out potential of R$ 3 million based on product developments.

Positive

• Acquisition of Cliquefarma enhances the Digital Prescription segment.
• Cliquefarma generated R$ 43.2 million GMV in 2020, showing 52.9% growth.
• Afya can leverage 20 million visitors from Cliquefarma to boost its ecosystem.
• Presence of experienced founders in Afya’s Digital team.
• Purchase price of R$ 19 million reflects a 4.1x gross revenue multiple.

Negative

• None.

NOVA LIMA, Brazil and MINAS GERAIS, Brazil, April 16, 2021 (GLOBE NEWSWIRE) -- Afya Limited, or Afya (Nasdaq: AFYA) today announced the acquisition of 100% of the total share capital of Cliquefarma, a healthtech company operating a free-to-use website that tracks prescription drugs, cosmetics and personal hygiene product prices in Brazil.

Users of Cliquefarma can easily search for medications or healthcare products and compare prices from over 5,000 pharmacies in Brazil. The traffic generated is monetized through a cost-per-click model, where drugstores pay for each click on their ads.

“The acquisition of Cliquefarma will enhance our Digital Prescription pillar, creating the opportunity to leverage traffic and GMV with prescriptions generated from Afya’s Physician Ecosystem. As an example, iClinic’s prescriptions generated in 2020 totaled 3.4 million.

We are also very pleased that Angelo Alves and Cezar Machado, Cliquefarma’s founders, will join Afya’s Digital team bringing more than 25 years of experience in the healthtech market,” said Virgílio Gibbon, Afya’s CEO.

In 2020 Cliquefarma generated traffic of 20 million visitors and R$ 43.2 million in GMV (Gross Merchandise Volume), the latter representing a 52.9% growth compared to 2019.

The aggregate purchase price is R$ 19 million (Enterprise Value) of which 84.2% paid in cash and 15.8% is paid in Afya stocks as the date hereof. An earn-out of R$ 3 million can be paid related to product development. This aggregate purchase price is equivalent to a 4.1x gross revenue multiple for 2021 expected gross revenue.

About Afya

Afya is a leading medical education group in Brazil based on number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and their daily practices with digital products.

Contact: Investor Relations: ir@afya.com.br

FAQ

What is the purpose of Afya's acquisition of Cliquefarma?

The acquisition aims to enhance Afya's Digital Prescription services and leverage Cliquefarma's traffic and gross merchandise volume.

What was Cliquefarma's revenue growth in 2020?

Cliquefarma achieved a gross merchandise volume of R$ 43.2 million in 2020, representing 52.9% growth compared to 2019.

How much did Afya pay for Cliquefarma?

Afya acquired Cliquefarma for R$ 19 million, with 84.2% in cash and the remainder in Afya stock.

Who are the founders of Cliquefarma and what is their role in Afya?

Angelo Alves and Cezar Machado, the founders of Cliquefarma, will join Afya’s Digital team, bringing over 25 years of healthtech experience.

What is the expected impact of the Cliquefarma acquisition on Afya?

The acquisition is expected to enhance Afya’s Digital Prescription pillar and increase its market presence through Cliquefarma's user traffic.