Sarasota fertility company to acquire Midwest clinic

A Sarasota fertility company plans to acquire a fertility clinic in the Midwest. Invo Fertility (Nasdaq: IVF) intends to buy Family Beginnings P.C., based in Indianapolis. Financial terms of the acquisition were not disclosed.

Led by Dr. James Donahue, Family Beginnings has been providing infertility care for more than 20 years, according to its website, which says the clinic has been the “pioneer of many reproductive technology ‘firsts’ in Indiana.” For example, it was the first in the state to document a pregnancy using Invo Fertility’s InvoCell, which is a medical device that allows fertilization and early embryo development to take place within a woman's body.

“Family Beginnings has long been recognized for its exceptional standards of care,” Invo CEO Steve Shum says in a statement. “Teaming up with Dr. Donahue and the Family Beginnings team is an important step in pursuit of our strategic growth efforts, and we look forward to supporting their continued success as we expand our presence across the Midwest.”

The acquisition would be the second for Invo Fertility, which purchased Wisconsin Fertility Institute in 2023. It aligns with the company’s strategy of building a national network of fertility centers to reach underserved markets and meet rising patient demand, according to the statement.

The deal is expected to close in the “near-term,” Shum says in a Nov. 28 statement.

After acquiring Family Beginnings, Invo Fertility plans to expand the clinic's treatment options; invest in infrastructure and technology; integrate digital patient engagement tools; and leverage Invo’s national network to offer resources, support programs and clinical expertise, according to a statement.

“Our teams share a deep commitment to helping individuals and families achieve their dreams of parenthood,” Donahue says in the statement. “By partnering with Invo, we will be able to broaden our offerings, introduce new and innovative treatment options and ensure that even more patients benefit from the high level of care we’ve always provided.”

Invo Fertility currently has three clinics in its portfolio — in Atlanta; Middleton, Wisconsin; and Birmingham, Alabama. The company’s commercial strategy is focused on building, acquiring and operating fertility clinics as it continues selling and distributing its InvoCell medical device to third-party-owned fertility clinics.

In 2024, Invo Fertility posted $6.5 million in revenue and had a net loss of $9.1 million. “Until we can generate a sufficient amount of cash from operations, we will need to raise additional funding to meet our liquidity needs and to execute our business strategy,” Invo Fertility says in its 2024 annual report. “As in the past, we will seek debt and/or equity financing.”

Days after sharing its plans to acquire Family Beginnings, Invo Fertility announced that it entered into a securities purchase agreement with a single institutional investor expected to generate gross proceeds of $4 million, before deducting the placement agent’s fees and other expenses. New York-based Maxim Group LLC is the sole placement agent in connection with the offering, which is expected to close Dec. 3.