Oxford Immunotec acquires Imugen for $22.2m cash

UK-based diagnostics company Oxford Immunotec has announced that it will acquire Imugen, a US clinical laboratory, for $22.2 million in cash.

The agreed price, which is worth approximately twice Imugen’s 2015 revenue, is expected to be paid by July 1, 2016.

The agreement is based on Imugen’s business being consistent with Oxford’s strategic vision. Oxford said that Imugen’s business fits well with its strategy to focus on immune-regulated conditions, including tick-borne disease that develops into chronic infections when untreated and affects weakened immune systems.

The acquisition will also further expand Imugen into the tick-borne disease market, and is estimated to increase Oxford’s total addressable market by $400 million to $500 million.

Oxford said in a statement that it intends to leverage its existing sales and marketing infrastructure to increase Imugen’s revenue growth over time.

“We are very excited about the acquisition of Imugen. It is a significant step towards achieving our vision of becoming a leader in the field of immune-regulated conditions,” said Peter Wrighton-Smith, chief executive officer of Oxford.

Oxford also stressed that the transaction will add to both companies’ laboratory capabilities.

The company commented on its future business outlook, stating that it expects the acquisition to contribute approximately $5.5 million in revenues in the second half of 2016.