US-based Techne has agreed to buy Bionostics Holdings and its operating subsidiary Bionostics for $104m in cash as part of a strategy to expand its haematology products portfolio.

The deal is likely to close in the first quarter of fiscal 2014 and is expected to be slightly accretive to Techne’s fiscal year 2014 net earnings.

Bionostics manufacture control solutions that validate the proper working of in vitro diagnostic (IVD) devices, which are used in blood glucose and blood gas testing.

It also has strategic supply relationships with almost all international IVD device original equipment manufacturers (OEMs).

Techne develops, manufactures and sells biotechnology products and hematology calibrators and controls through its subsidiaries R&D Systems and R&D Systems Europe.

Following the completion of the deal, the hematology divisions of the two companies will be combined under a new Clinical Controls Division of R&D Systems.

Established in 1981 and headquartered in Devens, Massachusetts, Bionostics’ controls are device-specific formulations requiring FDA 510(k) approvals.

Controls for blood glucose and blood gas devices form the largest segment of Bionostics’ business.

Recently, Bionostics launched coagulation device control products and is developing new controls for other diagnostic purposes, such as controls for cholesterol and HbA1c point-of-care testing (POCT) devices.

"The deal is likely to close in the first quarter of fiscal 2014 and is expected to be slightly accretive to Techne’s fiscal year 2014 net earnings."

For the fiscal year ended 31 August 2012, Bionostics generated $29.3m, with its adjusted earnings before interest, taxes, depreciation and amortisation at $9.4m.

Techne CEO and president Charles R Kummeth noted that the acquisition of Bionostics would add capabilities in new areas like coagulation and expands its controls portfolio, giving the company the critical mass it needs to remain competitive and offer its customers continued value and options to serve their needs.

Bionostics CEO Michael H Thomas noted that strategically the fit is excellent, as both Bionostics and R&D Systems have many customers in common and yet their product offerings are entirely complementary.

"Consequently, the combined business will represent far more of a one-stop-shop for our customers and ideally position us to compete in the global market," Thomas added.

Thomas will serve Bionostics in a consulting capacity during the transition period after the closure of the deal, while the management team and employees will continue with the product development, marketing and sales activities from Devens, Massachusetts.

The team will also coordinate with R&D Systems and its related European and Chinese units.