NEW YORK — Australian diagnostics firm Genetic Technologies said Monday that it has signed an agreement to acquire EasyDNA, a provider of direct-to-consumer DNA tests, for $4 million in cash and stock.
Under the terms of the deal, Genetic Technologies will pay BelHealth Investment Fund, the majority owner of EasyDNA, $2 million in cash up front. It will pay an additional $1.5 million in Genetic Technologies American Depository Receipts and $500,000 in cash on the first anniversary of the transaction's closing, which is slated for July 31.
Genetic Technologies will receive all of the websites, brand identities, laboratory testing, and distribution agreements associated with General Genetics Corporation, which trades as EasyDNA.
EasyDNA sells a range of paternity, oncology, animal genomics, and health and wellness genetic tests through 12 agreements with labs in North America, Europe, and the Asia-Pacific region. According to Genetic Technologies, EasyDNA — which is based in Malta and Australia — generated $4.6 million in revenues last year, 20 percent of which was from the UK, and will help accelerate its move into wellness testing.
"With several of our existing tests already CE marked, gaining established sales channels into the EU provides a solid foundation for rapid growth," Genetic Technologies CEO Simon Morriss said in a statement. "Further, with notable recent progress on our Predictive Panel Risk Test, covering six different cancers, having a strong distribution platform in place with global reach will significantly strengthen our rollout strategy as we move this exciting test into commercialization."