Inverness Medical Innovations Inc plans to acquire Applied Biotech Inc from Apogent Technologies Inc. Applied Biotech, located in San Diego, California, is a developer, manufacturer and distributor of rapid diagnostic products in the areas of women's health, infectious disease and drugs of abuse testing.

Under the terms of the agreement, Inverness will acquire all of the stock of Applied Biotech in exchange for 692,506 shares of its common stock and additional consideration of either a payment of $13,400,000 in cash at the closing of the acquisition, or a payment of $5,000,000 in cash at the closing of the acquisition and a one-year $8,400,000 subordinated promissory note. The Inverness shares will be issued in a private placement at the closing of the acquisition and Inverness has agreed to register the shares for resale following the closing.

The transaction is subject to Inverness obtaining the consent of its lenders and other and customary closing conditions. The acquisition is expected to close in August.

Ron Zwanziger, CEO of Inverness Medical Innovations, stated "The addition of Applied Biotech is a continuation of our efforts towards establishing a preeminent position in the field of point-of-care diagnostics. We expect to benefit from product and distribution synergies with our Wampole business and, post-integration, the acquisition is likely to be accretive to earnings."