28th September 2021
EKF Acquires PCR-Focused Testing Laboratory
AIM-listed point-of-care business EKF Diagnostics Holdings has agreed to acquire Advanced Diagnostic Laboratory, a Texas-based PCR-focused testing laboratory.
The acquired company is certified under the Clinical Laboratory Improvement Amendments (CLIA) for high complexity testing. It is being bought for an initial consideration of $10m payable in shares on completion, with further performance-based consideration payable over the following three years.
ADL Health’s CLIA-certified laboratory covers the fields of clinical, forensic and microbiological tests.
Under EKF’s ownership, further investment is anticipated to support the deployment of additional equipment and personnel in order to service customer demand.
ADL Health has grown significantly since inception in 2020 and the management teams of EKF and ADL Health consider that the business has continuing, strong growth prospects as part of the enlarged EKF Group.
While the growth of ADL Health has been accelerated by revenue from Covid testing, its wider testing offer, including current and planned capabilities, is considered by the EKF board to provide an attractive platform to both complement and broaden the group’s existing diagnostics capabilities.
Mike Salter, president of EKF Diagnostics’ Americas and chief executive designate of EKF, said: “Strategically this is an excellent move for us as it positions EKF as a leading provider of diagnostic products and services, including a testing offering that our industry partners have been looking for us to provide.
“The ability to offer testing for a wide range of diseases, combined with our existing point-of-care device, reagent, sample collection, kitting and manufacturing services, positions us as a single provider able to encompass all products and services from ‘sample-to-result’.”
N+1 Singer is acting as EKF’s nominated adviser and, along with Investec, its joint broker.