FAST NEWS: Euda Health acquires CK Health in $15 million deal

The Latest: Singapore-based digital health platform EUDA Health Holdings Ltd. (EUDA.US) said on Wednesday it completed its acquisition of CK Health Plus Sdn Bhd, a Malaysian provider of consumer wellness products, in a deal that values CK Health at $15 million.

Looking Up: The acquisition will give EUDA an entry to the healthcare markets in Malaysia, Vietnam and Indonesia, representing “a key strategic move that enhances (EUDA’s) regional presence and accelerates its growth trajectory,” EUDA said.

Take Note: EUDA’s current market cap is about $45 million, meaning the acquisition represents about one-third of its market value.

Digging Deeper: Founded in 2019, EUDA is a Singapore-based health technology company that went public on the Nasdaq in 2022 by merging with a special purpose acquisition company (SPAC). The company operates an AI platform that “quickly assesses a patient’s medical history, triages a condition, digitally connects patients with clinicians, and predicts optimal treatment outcomes.” It said the acquisition of CK Health, which distributes bioenergy cabins, collagen drinks and skincare products in Malaysia, Vietnam and Indonesia, will help to diversify its product portfolio, enhance its distribution channels and offer complementary expertise to its existing offerings. “The strategy behind this acquisition is to target chronic conditions using noninvasive treatments,” said EUDA CEO Kelvin Chen, adding the purchase would allow EUDA to boost its presence in the $420 billion Southeast Asian healthcare market.

Market Reaction: EUDA’s shares initially fell on the first day after the announcement, but rebounded in the next two trading days to their previous levels. The stock is up about 55% this year.

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Reporting by Doug Young