HITIQ fast-tracks growth plans with NZ concussion tech platform takeover
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In a move which will fast-track development of HITIQ’s concussion technology platform, the company has acquired New Zealand firm CSX, which has a global customer base of professional sporting associations.
Health technology company HITIQ (ASX:HIQ) has launched a successful takeover bid of leading concussion assessment technology company CSX Limited for more than $1 million.
HITIQ will pay initially ~$850k cash with a further $250k to be paid within 18 months of acquisition based on agreed KPIs.
CSX founder Ed Lodge and two key developers have agreed to join the HITIQ team.
CSX provides class leading concussion assessment technology through its application software to more than 800 global elite and consumer customers, representing 45,000 users.
The technology works by simplifying the collection of comprehensive, objective and player-specific concussion assessment data within a cloud-based application.
The data can be reviewed and shared with healthcare professionals to assist in their assessment and treatment of concussions
CSX is used by several professional sports associations globally including World Rugby, National Rugby League (NRL), Australian Football League (AFL), New Zealand Rugby, New Zealand Cricket, and the England and Wales Cricket Board (ECB).
The CSX acquisition accelerates HITIQ’s technology platform development, providing enhanced functionality to strengthen and differentiate its value proposition.
With more than 45,000 global users, CSX delivers scale through data, customers and functionality which is aligned with HITIQ’s platform development strategy to build a comprehensive end-to-end concussion management ecosystem.
CSX’s global customer base will accelerate HITIQ’s growth strategy by strengthening the offering to existing customers and partners, as well as acquisition opportunities in new markets.
The takeover will also enhance commercial opportunities for sustainable revenue growth. The CSX concussion assessment business has annual revenue of $430k, which includes ~100,000 assessments performed on the CSX platform.
Integrating CSX will build upon revenue growth through a meaningful global customer base that is using HITIQ’s leading concussion management technology to deliver best-in-class player health outcomes.
HITIQ is continuing to expand its global footprint, recently entering a deal with Scottish Rugby, the governing body for rugby union in Scotland. The deal will see the deployment of HITIQ’s flagship Nexus A9 mouthguard with impact sensor technology in a full-scale trial for the upcoming 2021/22 Scottish rugby season.
HITIQ also scored a touchdown in its bid to break into the lucrative US college football market with the Nexus A9 being deployed in six key FBS division one programs to capture all head impacts by more than 100 players across training and games for the 2021 season.
Collegiate American football, with close to 900 programs, and 100,000 participating players, represents a significant component of HITIQ’s targeted US market.
CSX founder Ed Lodge said the company was delighted to join HITIQ , which he described as having market-leading technology along with a vision for an exciting and meaningful vision.
“Our mission when we founded CSX was to help individuals better manage brain injury, and together with HITIQ, we believe our technology can reach the masses,” Lodge said.
“We are excited to integrate our technologies and get to work with HITIQ’s team.’’
HITIQ CEO Mike Vegar said adding the CSX product to its technology ecosystem will strengthen the company’s growing networks worldwide, while supporting current partners with a streamlined and consolidated approach to concussion management.
“CSX is the first step in extending our platform not only in the elite sports market but also providing a clear pathway into community sports,” Vegar said.
“We look forward to working with Ed and his team in helping scale his vision and ultimately assist customers drive better health outcomes for their players and children.’’
This article was developed in collaboration with HITIQ, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.