The company has a preliminary valuation range of between 18 and 25 million euros.
Madrid, September 2024. Substrate AI, the artificial intelligence company listed on BME Growth, has hired the consulting firm LKS NEXT to carry out the IPO of its AI Health subsidiary, 4D Médica. This milestone was part of Substrate AI's business plan and this contract is the first step to make it a reality.
LKS Next -integrated in the MONDRAGÓN Corporation- is a leading consulting, technology and financial and legal advisory organization, with a staff of close to 800 professionals specialized in the industrial, technology and health sectors. As a financial advisor, it has participated in numerous M&A Advisory and capital markets transactions. The consulting firm will support the company in the preparation of all the necessary documentation, in the choice of the most suitable market for the IPO and in the search for investors considering the idiosyncrasies of 4D Médica's business and the available alternatives.
Substrate AI acquired the 70% from 4D Médica in 2022 for €1.4 million. Initially, 4D Médica was a diagnostic imaging hardware sales company focused on the veterinary sector, led by Francesc Ramos, CEO and founder with more than 20 years of experience in the sector, who had already sold a similar company to Eiffage. Following this acquisition, the 4D Medical and Substrate AI teams started working together to transform 4D into what it is today: an AI company applied to diagnostic imaging, with hardware and software divisions, operating not only in the veterinary sector, but also in the human medicine sector.
In this process, Substrate AI acquired Diaximag in 2023, consolidating it with 4D Médica. Diaximag is focused on hardware for human medicine and is Samsung's main distributor in Spain. In addition, a software division was created that has developed an AI-enabled diagnostic imaging SaaS designed to help veterinarians obtain more accurate diagnoses, thus improving service to patients. This software will soon also be available for the human medicine sector, improving the diagnosis of key diseases. In addition, they are working on the application of AI to reduce radiation exposure to both patients and physicians by incorporating collimator self-regulation software in ionizing radiation-emitting equipment, as well as on new assembly software that will enable them to bring integrated hardware with higher performance to market.
All this has driven 4D Médica's sales growth, which has gone from 1.8 million in 2021 to 3 times more in 2024, thus multiplying sales by 3 in 3 years. maintaining its EBITDA margin above 25%.
"We are very satisfied with the road we have traveled in just two years. Together with Substrate AI, and thanks to their technology and support, we have transformed the company and prepared ourselves to become one of the key players in the application of AI to diagnostic imaging, an essential part of current and future medicine. Moreover, from the very beginning, we set out to ensure that everything we did would have a clear social impact, improving people's lives. We have achieved this, and we will continue to work on animal welfare, the safety of professionals exposed to high levels of radiation and on the circular economy, as we are major recyclers of obsolete machinery. All this motivates us and positions us as what we aspire to be: a high-tech company committed to its impact on society and the planet," says Francesc Javier Ramos, CEO of 4D Médica.
LKS NEXT, Substrate AI and 4D Médica will now work to match the timing of the IPO to the company's needs as part of its growth plan.
Substrate AI went public on BME Growth in May 2022 and operates as a holding company of companies that sell, apply and develop artificial intelligence solutions in sectors such as healthcare, agritech, fintech, human resources, energy and education, with a focus on creating efficiencies that drive the economy towards sustainability and emission neutrality.
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