Inverness Medical to acquire Binax

US firm Inverness Medical Innovations, a manufacturer and marketer of consumer and professional diagnostic products and developer of advanced medical devices, has signed a definitive agreement to acquire Binax, a privately-held company located in Portland, Maine. Binax is a leading developer, manufacturer and distributor of rapid diagnostic products for infectious disease testing, primarily related to the respiratory system. Binax is a profitable company with sales in 2004 of approximately $20.0 million, noted Inverness.

Under the terms of the deal, Inverness will acquire all of the stock of Binax in exchange for 1,433,333 shares and an additional consideration of $8.6 million in cash at the closing of the acquisition. The accord also provides for a further consideration to the Binax shareholders of up to $11.0 million in cash, contingent upon the firm meeting certain new product development performance objectives over five years.