The acquired business includes tests sold within Inverness’s focus areas of infectious disease, cardiology, drugs of abuse and women’s health. In March 2006, Inverness acquired Acon’s rapid diagnostics business for the US, Canada, Europe, excluding Russia, the former Soviet Republics that are not part of the EU and Turkey, Australia, Israel, Japan and New Zealand.
As part of that transaction, Inverness and Acon entered into an agreement that provided that in the event certain financial performance and operating conditions were satisfied, Inverness would agree to buy and Acon would agree to sell Acon’s rapid diagnostics business for the remainder of the world (second territory). This second territory includes China, Asia Pacific, Latin America, South America, the Middle East, Africa, India, Pakistan, Russia and Eastern Europe.
Acon will retain its other worldwide in-vitro diagnostics businesses including diabetes, clinical chemistry and immunoassay products. The acquisition is expected to close on or about April 30, 2009 and is subject to customary closing conditions.
The aggregate purchase price for the acquired business will approximate $200 million, subject to final determination of Acon financial results for calendar year 2008, as well working capital and other customary adjustments. The purchase price will be paid in a series of payments, the first to occur at closing and the last to occur in October 2011.
Ron Zwanziger, CEO of Inverness, said: “We are very pleased to have entered into this agreement, particularly when considering today’s worldwide economic challenges, and similar to the 2006 acquisition, we are confident that this transaction will prove beneficial to employees, customers, Acon, Inverness and its investors.”