Waltham, Massachusetts’s Alere Inc. completed a performance-based acquisition of Epocal Inc., a developer of technologies that support blood gas and electrolyte testing. Alere, which will pay up to US$241.5 million, entered into the transaction with Epocal in 2009, making the purchase conditional on the company’s achievement of gross margin and other financial milestones by October, 2014. The Ottawa, Ontario-based Epocal has been venture-backed since its founding in 2001. The company’s investors include Canadian venture capital firms Covington Funds, Genesys Capital Partners and MMV Capital Partners.
Alere Acquires Epocal, Inc.
WALTHAM, Mass., Feb. 6, 2013 /PRNewswire/ — Alere Inc. (NYSE: ALR), a global leader in enabling individuals to take charge of their health at home through the merger of rapid diagnostics and health information solutions, announced today that it has acquired Epocal, Inc., a provider of best-in-class technologies that support blood gas and electrolyte testing at the point of care.
In 2009, Alere entered into a definitive agreement with Epocal to acquire all of the company’s issued and outstanding equity securities, contingent upon the achievement of gross margin and other financial milestones on or prior to October 31, 2014. After working capital and other adjustments made at closing, Alere paid approximately $166 million cash to acquire Epocal, which includes a $15 million payment for the achievement of the first two financial milestones specified in the agreement. Additional payments of up to $75.5 million couldbe triggered if milestones linked to the delivery of additional product offerings on the Epocal platform are achieved.
Commenting on the acquisition, Alere CEO, Ron Zwanziger, stated, “Through its unique combination of novel diagnostic parameters and wireless-enabled technology, Epocal has set new standards in helping healthcare practitioners in critical settings deliver better patient outcomes, all the while establishing clinical efficiencies. These achievements are core to Alere’s broader mission of empowering individuals and their physicians with data that drives more responsive decision making and improved health outcomes, and we welcome Epocal into the Alere family.”
By developing new capabilities in near-patient diagnosis, monitoring and health information solutions, Alere enables individuals to take charge of improving their health and quality of life at home. Alere’s global leading products and services, as well as its new product development efforts, focus on cardiology, infectious disease, toxicology and diabetes. Alere is headquartered in Waltham, Massachusetts. For more information regarding Alere, please visit www.alere.com.
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