NEW YORK (360Dx) – Point-of-care diagnostic firm Chembio Diagnostics said Tuesday it has completed its buy of RVR Diagnostics, a privately held Malaysian POC Dx firm.
The deal was originally announced in November. Chembio CEO John Sperzel said in a statement that the acquisition is a key component of the firm's plans to grow its footprint in Europe, the Middle East, Africa and the Asia-Pacific region. The New York-based company also recently hired Robert Passas to oversee that strategy.
"We believe the addition of a high-quality, low-cost manufacturing facility in Southeast Asia, where the population exceeds 600 million, is an important building block in Chembio's global plan," Sperzel said.
The team in Malaysia will continue to be led by RVR Managing Director Mac Vajuram, and RVR Vice President Avijit Roy, he added.
Under the terms of the acquisition, Chembio will pay up to $1.5 million in cash and up to 291,066 shares of Chembio common stock. The terms include $250,000 in both cash and stock based on the achievement of certain milestones, and Chembio is forgiving $250,000 that RVR currently owes the company.
Chembio develops, manufactures, markets, and licenses rapid diagnostic tests in the POC space, which it estimates at $8 billion. It has assays for HIV POC testing, as well as a POC test platform technology called the Dual Path Platform.