Inverness, Acon Laboratories Inc. deal

Inverness will acquire the remainder of Acon's rapid diagnostics business that it does not already own for about $200 million. The deal gives Inverness Acon's lateral flow immunoassay diagnostic products in China, Asia-Pacific, Latin America, South America, the Middle East, Africa, India, Pakistan, Russia and Eastern Europe. Acon reported 2008 revenues of $45 million in the territories. Inverness acquired the majority of Acon's rapid diagnostic business in 2006, with plans to acquire the remainder within three years (see BioCentury, Feb. 27, 2006).

Inverness said it will finance the transaction from cash on hand and has the ability to pay up to 34% of the purchase price in stock. Upon the deal's close, which is slated for April 30, Acon will receive $80 million in cash, with $70 million due on July 1 and up to another $25 million on the earlier of Aug. 31 or the closing of a financing for Inverness in excess of $100 million. The remaining money is due 15 and 30 months after the deal closes. ...