The Waltham, Mass.-based diagnostics maker said it will use the proceeds from the privately placed notes, which are due in 2016, to fund the $100 million in up-front cash it needs to seal the deal with the Seattle-based health management firm. The deal also calls for up to $30 million in additional payments pegged to Free & Clear’s 2010 revenues.
Inverness said it will immediately begin knocking on U.S. and international qualified institutional buyers’ doors to raise the cash.
Free & Clear, which will operate under Inverness’ Alere consumer health management subsidiary, provides evidence-based programs aimed at chronic disease triggers such as tobacco use, poor nutrition, physical inactivity and stress. The company posted sales of more than $47 million last year.