Diagnostic testing solutions firm Meridian Bioscience has signed a definitive agreement to acquire Canadian molecular diagnostics maker GenePOC in a deal valued at $120m.

GenePOC, which was founded in 2007, is a subsidiary of Debiopharm Group. The company’s portfolio includes the US Food and Drug Administration (FDA)-cleared revogene molecular diagnostics platform.

Currently, the platform has assays for Clostridium difficile, Group A Streptococcus and Group B Streptococcus. The platform allows single tests as well as multiplexing.

Meridian believes that revogene would complement its strategy to provide medical health systems with diagnostic solutions for gastrointestinal disease and core respiratory illness.

The company noted that the three assays available on the revogene platform contribute to majority of its current total molecular diagnostics sales.

This would offer a new platform for Meridian’s existing clients who seek better workflow and less hands-on time compared to its current Alethia platform.

“GenePOC provides an exciting new state-of-the-art molecular diagnostics platform to our Diagnostics portfolio.”

In addition, the multiplexing capability of revogene will enable Meridian to provide smart panel solutions that are currently in development and planning stages.

Meridian Bioscience CEO Jack Kenny said: “GenePOC provides an exciting new state-of-the-art molecular diagnostics platform to our Diagnostics portfolio. This is a critical element of our strategy to reposition our Diagnostics business for sustainable long-term growth.

“GenePOC’s revogene platform is an excellent fit for our customers and strategy to offer gastrointestinal-focused and other targeted diagnostic solutions to meet the diverse needs of today’s more complex health care system.”

Meridian will make a payment of $50m at closing of the transaction.

The deal also involves additional payments of around $20m in Meridian’s fiscal 2021 upon reaching select technical development milestones, along with a final payment of up to $50m in fiscal 2023 based on sales performance of certain molecular assays.

Subject to certain closing conditions, the acquisition is expected to close by the fourth quarter of Meridian’s fiscal 2019.