Inverness Medical Innovations Inc. has entered into a definitive agreement with Acon Laboratories Inc. to acquire Acon's business of researching, developing, manufacturing, marketing and selling lateral flow immunoassay products in the United States, Canada, Western Europe, Israel, Australia, Japan and New Zealand for $ 175 million.

The business to be acquired had 2005 revenues and operating income of approximately $50 million and $17 million, respectively. As part of the acquisition Inverness will acquire a newly-constructed manufacturing facility which is currently undergoing validation in Hangzhou, China. The acquisition is expected to close in the first or second quarter with the Hangzhou manufacturing facility to be acquired through a separate closing expected to occur by the end of the second quarter of 2006, states the company release.

Inverness and Acon also expect to enter into an agreement at the time of the closing pursuant to which Inverness would agree to acquire Acon's rapid diagnostic business in the rest of the world in approximately three years, subject to that business' satisfaction of certain future financial performance and operational conditions.

Inverness Medical Innovations is a leading global developer of advanced diagnostic devices and is presently exploring new opportunities for its proprietary electrochemical and other technologies in a variety of professional diagnostic and consumer-oriented applications including immuno-diagnostics with a focus on women's health, cardiology and infectious disease.