Biolidics to acquire Biomedics Laboratory for up to S$3.7m

CANCER-diagnostics company Biolidics has entered an agreement to acquire Biomedics Laboratory from SAM Laboratory, a subsidiary of Clearbridge Health, for a cash consideration of up to S$3.7 million.

This acquisition will give Biolidics immediate access to Biomedics Laboratory's resources and capabilities, said Biolidics in a statement on Friday. 

Under the agreement, Biolidics will pay S$100,000 upon completion of the acquisition; the remaining consideration can be deferred for up to 24 months. If Biolidics makes payment within 12 months upon completion of the acquisition, the total consideration of the acquisition shall be less - S$3.5 million. 

In relation to the acquisition, Biolidics said that it will continue to collaborate with Clearbridge to tap its customer base by entering a distribution-services agreement with Clearbridge Medical Group to distribute diagnostics tests.

The acquisition and distribution-services agreements are subject  to the approval of Biolidics' shareholders at an extraordinary general meeting, to be convened in due course.

The company has appointed Xandar Capital as the independent financial adviser.

Biolidics shares closed up 4.6 per cent at S$0.21 on Friday.