Adheris Health has received the final $6.1 million holdback payment from its Australian and New Zealand business sale, bringing total proceeds to $33.1 million and setting the stage for future earn-out payments.
- Received $6.1 million holdback payment post-ANZ divestment
- Total consideration from sale now $33.1 million
- Transaction includes uncapped earn-out over three years
- First earn-out payment expected around July 2026
- Divested ANZ business performing in line with expectations
Finalising the ANZ Divestment
Adheris Health Limited has announced the receipt of a $6.1 million holdback payment following the sale of its Australian and New Zealand business unit. This payment finalises the outstanding holdback portion of the transaction, which was initially agreed upon to cover any post-completion adjustments. With this latest payment, Adheris Health has now secured a total of $33.1 million from the divestment, including the $27 million received at the original settlement.
Understanding the Holdback and Earn-out Structure
The holdback amount is a common feature in transactions of this nature, designed to protect the buyer and seller from unforeseen liabilities or adjustments after the deal closes. In this case, the holdback has been fully released, signalling that no significant post-sale issues have arisen. Beyond this, the deal includes an uncapped earn-out component payable over the next three years, with the first payment anticipated around July 2026. This earn-out is contingent on the ongoing performance of the divested ANZ business, which early indications suggest is meeting expectations.
Strategic Implications for Adheris Health
Adheris Health’s divestment of its ANZ business aligns with its broader strategy to focus on its core pharmacy-driven patient engagement solutions, particularly leveraging its AI-enabled THRiV platform. The capital inflow from the sale, including the holdback and potential earn-outs, provides the company with financial flexibility to invest in growth initiatives, technology enhancements, and expansion in other markets, notably the US where it already has significant reach.
Looking Ahead
While the receipt of the holdback payment marks a key milestone, the uncapped earn-out introduces an element of future upside tied to the divested business’s performance. Investors will be watching closely for updates on these payments and any further strategic moves by Adheris Health as it continues to refine its focus and capital allocation. The company’s ability to leverage its technology platform and maintain strong operational momentum will be critical in driving shareholder value going forward.
Bottom Line?
With the holdback settled, all eyes now turn to the upcoming earn-out payments and Adheris Health’s next strategic moves.
Questions in the middle?
- How will the uncapped earn-out payments impact Adheris Health’s future cash flow?
- What strategic investments will Adheris Health prioritise with the proceeds from the ANZ divestment?
- How is the divested ANZ business performing operationally beyond early indications?