PE Deals

Pharos exits diagnostic tests provider TechLab

The buyer is SSI Diagnostica, which is backed by Adelis Equity.

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  • Based in Copenhagen, SSI Diagnostica is a developer and manufacturer of diagnostics products
  • Lincoln International served as financial advisor and Gibson Dunn served as legal counsel to TechLab and Pharos on the transaction
  • Pharos initially invested in TechLab in September 2016

Pharos Capital Group has sold its stake in Blacksburg, Virginia-based TechLab, a maker of rapid, non-invasive diagnostic tests for infectious disease, intestinal inflammation, and parasitology. The buyer is SSI Diagnostica, a portfolio company of Adelis Equity. No financial terms were disclosed.

Based in Copenhagen, SSI Diagnostica is a developer and manufacturer of diagnostics products.

TechLab will continue to operate out of its Virginia R&D and manufacturing facilities, and will retain its workforce subsequent to the transaction. TechLab’s existing management team will remain with the company.

“Pharos is a committed investor in the diagnostics sector, and we are pleased to have worked with TechLab to expand the company’s distribution network and the reach of its enteric diagnostic tools,” said Joel Goldberg, a partner at Pharos Capital Group, in a statement. “Our hope is that TechLab will continue to thrive with SSI Diagnostica as it continues to grow its product offering to help reduce the annual economic and medical burden of healthcare-associated infections by giving practitioners the means to quickly assess patient needs, improve outcomes, and decrease readmissions.”

Pharos initially invested in TechLab in September 2016 out of its Pharos Capital Partners III/III-A funds.

Lincoln International served as financial advisor and Gibson Dunn served as legal counsel to TechLab and Pharos on the transaction.
TechLab was founded in 1989.

Based in Dallas and Nashville, Pharos Capital is a physician-founded investment firm focused on growing healthcare companies. Since inception, Pharos has invested in 57 companies and has over $1.2 billion of private equity assets under management as of June 30, 2022. Pharos typically invests $25 million to $50 million in rapidly growing middle market companies.