NEW YORK (360Dx) – Novacyt said today that its Lab21 Products protein diagnostics division has entered an agreement to acquire Omega Diagnostics' infectious disease business for up to £2.2 million ($2.9 million).
The acquisition fee consists of £1.8 million upon completion, £175,000 paid after 12 months and upon completion of technology transfer, and £200,000 paid upon the successful accreditation to certain standards of an Omega Diagnostics production facility in Axminster, UK.
Graham Mullis, CEO of Novacyt, said in a statement that the firm has been looking to expand its Lab21 product range, and the Omega infectious disease business is "a perfect match" with its current portfolio. "This acquisition is expected to deliver material cost and growth synergies as we leverage the Novacyt infrastructure, and integration will start immediately after completion," he said, adding that the firm continues to assess "a deep pipeline" of potential future acquisitions.
The Omega infectious disease business specializes in the manufacture of a range of diagnostic kits, including tests for syphilis and febrile antigens and a range of latex serology tests for rheumatoid factor, C-reactive protein, antistreptolysin, and systemic lupus erythematosus.
Lab21 will assume the commercial rights to core registered brands that consist of enzyme immunoassay microtiter plates, and latex agglutination, fluorescence, and rapid lateral flow tests. The brands include Immutrep, Avitex, Micropath, Pathozyme, and other smaller brands. Omega has granted a time-limited license to Lab21 for the use of the name Visitect for certain lateral flow tests excluding Omega's Visitect CD4 assets.
Novacyt said that Omega's range of complementary products increases the global reach of Lab21 and opens new sales channel opportunities, particularly in Africa. The firm said that the acquisition adds £2.5 million of annual sales and positive operational cash flows, and that revenue synergies are "targeted from 2019."