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Waltham-based maker of home medical diagnostics and health management products Inverness Medical Innovations Inc. is seeking to buy London-based drug and alcohol testing supplier Concateno PLC for a final sum yet to be decided.
Concateno also offers clinical diagnostic products. In an announcement this week, Inverness (NYSE:IMA) reached an agreement to buy all of Concateno’s outstanding share capital. The acquisition will be executed under a court-approved scheme of arrangement under Part 26 of the United Kingdom Companies Act. It’s subject to the approval of Concateno’s shareholders and the sanction of the High Court of Justice in England and Wales, along with other customary conditions. The buyout is expected to become effective during the third quarter of 2009, pending approval.
The exact price to be paid is not yet certain. Under the current proposed terms of the acquisition, however, each holder of Concateno shares will receive 79 pence in cash (about $1.27 in U.S. currency) and 0.02 shares of Inverness’ common stock, based on Inverness’ closing price per common share on the New York Stock Exchange on June 4, 2009 of $34. Concateno claimed there are
approximately 103.2 million shares currently issued; this factors in certain shares which will be repurchased by Concateno for “nominal consideration” and cancelled as a result of the transaction. The final price can be affected by a change in Inverness stock price, however.
Concateno’s “unique position” in the European point of care and drug abuse testing market is a “perfect complement” to Inverness’ existing drug abuse business, which mostly operates in the U.S., the company claimed in a statement. There is also very little product overlap, as Inverness currently supplies Concateno with many visually read drug abuse tests.
Concateno’s 2008 revenues were approximately $76 million.
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