EKF Diagnostics (LON:EKF) , the in-vitro diagnostics company, announced that it plans to acquire the entire issued share capital of Surrey based Quotient Diagnostics Ltd. Quotient is an unquoted company that develops and markets high speed Point of Care (PoC) diabetes (glycated haemoglobin or HbA1c) diagnostic systems. The acquisition is the second step of the company's PoC diagnostics buy and build strategy. The initial consideration for the sale will be £3.4 million for the equity plus £273,191 in loan notes. The deal also includes a provision for an additional £2 million in deferred compensation contingent on future sales performance.
The comany also recently announced its maiden interim results since refocusing the business from licensing sportswear brands (under the International Brand Licensing name) and taking over EKF Diagnostics GmbH. Because the company is still in the process of disposing of the Admiral sports trademarks and the acquisition had not been completed at the end of the period, the total revenues of £35,000 and loss before tax of £675,000 does not reflect the nature of the business going forward. The company is continuing the process of selling off the Admiral trademarks in Europe as well as North and South America as it launches its new strategy under the leadership ofJulian Baines and David Evans. The company is now focusing on the development, production and worldwide distribution of Point of Care (PoC) diagnostic analysers for glucose and HbA1c (diabetes) along with lactate (aerobic capacity), haemoglobin and haematocrit (anemia).
EKF shares have appreciated by 109% over the last year (EKF traded as IBL before June 2010).
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