San Jose, Calif.-based Alverix and BD were partners in developing the Veritor system for point-of-care diagnostics, according to a press release.
"Point-of-care testing is increasingly an integral part of patient healthcare in both developed and developing countries and BD is committed to expanding in this space," COO William Kozy said in prepared remarks. "This acquisition enables BD to continue to strengthen and grow our point-of-care testing position."
The Veritor device uses advanced particle and adaptive read technologies to deliver results inside of 10 minutes, according to the release. The device is designed to detect both A- and B-type influenza viruses, Group A strep, adenovirus and respiratory syncytial virus, BD said.
"The transaction is expected to be minimally dilutive for fiscal year 2014, and will not impact BD’s previously communicated 2014 earnings guidance," according to the release. BD’s general manager for point-of-care diagnostics, Richard Tarbox III, who was president & CEO of Alverix until the merger, said Alverix was spun out of Avago Technologies in 2007.
Some $17.4 million of the $40 million purchase price will go to Alverix backer Safeguard Scientifics (NYSE:SFE), for a 1.9x return on the $9.4 million its put into Alverix since 2007, according to a separate release. Some $1.7 million of that nut will be held in escrow for about a year and a half, Safeguard said.
"We deployed capital into Alverix with the notion that high performance near-patient testing was a significant market opportunity," Safeguard’s healthcare managing director Dr. Gary Kurtzman, who’s also chairman at Alverix, said in prepared remarks. "Alverix’s platform technology, which is based on low-cost optoelectronic components and sophisticated detection algorithms, proved that laboratory quality results could be achieved at the point of care. BD saw value in Alverix’s platform early on and has been co-developing and commercializing the BD Veritor System. As a result, BD was a natural acquirer to continue its investment in next-generation point-of-care instruments and platforms."