NEW YORK (GenomeWeb News) – Australian bioseparations products firm NuSep today said that it has signed a letter of intent to acquire US-based mass spectrometry software development firm BioInquire for more than $3 million.
NuSep also said that it has closed a private placement of its shares, raising $830,000.
The deal would provide NuSep with BioInquire's ProteoIQ software, which helps customers identify proteins separated by mass spec instruments, such as NuSep's ProteomeSep MF10. NuSep believes the acquisition would increase and accelerate sales of the ProteomeSep MF10 into the mass spec prefractionation market. It also would rprovide the firm with greater sales coverage in the US.
"We strongly believe that sales for the ProteomeSep MF10 will be boosted by providing a complete solution to our mass spectrometry customers," NuSep Managing Director and CEO Hari Nair said in a statement.
Under terms of the deal, NuSep would make an initial payment of $1.5 million in early 2010, following shareholder approval. It would make a further $1 million payment if BioInquire achieves agreed-upon milestones for the year ended Dec. 31, 2010. On Dec. 31, 2010, NuSep would pay BioInquire shareholders a total of $500,000 in NuSep stock. Finally, a cash payment would be made on June 30, 2011 of the difference between three times the 2010 calendar-year results and the three previous payments.
BioInquire is expected to post a 2010 profit of around $1.2 million, and NuSep said that it expects the acquisition to add $500,000 to its profit for the fiscal year ended June 30, 2010.