NEW YORK – Point-of-care testing firm EKF Diagnostics said on Wednesday that it has agreed to acquire Advanced Diagnostics Laboratory (ADL Health) for $10 million in shares and additional performance-based payments of up to $60 million over the next three years.
EKF said it has established a special purpose Texas limited liability company as a wholly owned subsidiary, so San Antonio-based ADL Health was able to merge with the new company and file a certificate of merger. The acquisition will be complete as soon as the certificate, filed earlier this week with the Texas Secretary of State, is acknowledged, EKF said.
ADL Health is a CLIA-certified testing laboratory focused on PCR for clinical, forensic, and microbiological tests, as well as COVID-19 testing. The lab is currently expanding its range of testing capabilities, and EKF's investment is intended to "support the deployment of additional equipment and personnel," EKF said.
Founded in May 2020, ADL Health had revenues of $6.3 million for the six-month period ending June 30, 2021. The business generates cash, and Cardiff, Wales-based EKF said it expects the acquisition to enhance its earnings immediately.
"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," Mike Salter, president of EKF Diagnostics Americas and CEO-designate of EKF, said in a statement.
“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,'" he added.