BioMérieux, a medtech firm based in France, is to acquire US rival BioFire, a spin-out of the University of Utah, for $450m.
Launched 20 years ago, the Salt Lake City-based BioFire specialises in producing FilmArray, a medical diagnostics kit which can identify 20 bacterial and viral infections in one hour. As part of the deal, which will see BioMérieux acquire 100% ownership of BioFire, the French medtech will not only be able to add FilmArray to its own product line-up, but also grab a solid footing in the US which currently makes up 24% of BioMérieux’s total sales.
Funding the buyout through BioMérieux revolving credit facility, the French firm hopes the acquisition will generate an additional $80m in 2014.
BioFire has raised $70m in venture funding over the past two years, with two rounds for $25m and $45m both led by private credit fund Anthyrium Opportunities.
Jean-Luc Belingard, chief executive of BioMérieux, said: “The acquisition of BioFire fits perfectly into bioMérieux’s selective strategy for external growth. It enables us to reinforce our infectious disease franchise, our main area of specialization. FilmArray is the only system that makes it possible to detect disease-causing viruses and bacteria using a single reagent. As such, it eliminates the borders between different technologies, simplifying the diagnosis of infectious diseases and delivering faster results for better patient care.”
He added: “On all our markets, we now have a complete portfolio of particularly innovative technologies with two key benefits: enhanced medical value of diagnostics and optimized workflows in medical laboratories. The Salt Lake City BioFire’s site will become our hub for our expansion in molecular biology. We are especially pleased to welcome the talented employees of BioFire, who will work in close collaboration with bioMérieux teams at our Grenoble and Verniolle sites.”
