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(Sharecast News) - Lateral flow contract research, development and manufacturing provider Abingdon Health announced the acquisition of IVDeology and its subsidiaries on Tuesday, for up to 0.7m.
The AIM-traded firm said IVDeology, based in the UK, provides regulatory consultancy support to a global clientele in the in vitro diagnostics sector.
It said it offers a range of regulatory services tailored to meet the requirements of different markets, including support for the in vitro medical devices regulation (IVDR) for the EU market, UK Conformity Assessed (UKCA) marking for the UK market, and FDA support for the US market.
Services include technical file construction, regulatory filing assistance, implementation of Quality Management Systems, and Quality Assurance.
Additionally, IVDeology acts as the UK responsible person for non-UK manufacturers seeking to register their products in the UK market.
Regulatory experts Stuart Angell and Nancy Consterdine co-founded IVDeology, and would continue to lead the organisation within the broader Abingdon Health group.
The board said the strategic acquisition would fortify Abingdon's position as a leader in regulatory services within the in vitro diagnostics sector.
With ongoing regulatory changes such as the implementation of IVDR in Europe, the introduction of UKCA marking in the UK, and recent alterations in the classification of lateral flow products in the United States, there was growing demand for expert regulatory guidance.
Abingdon said it aimed to leverage IVDeology's expertise to support its existing and new clients in navigating the evolving regulatory landscape, enhancing its service offerings.
Consideration for the acquisition would amount to up to 0.7m, to be satisfied through the issue of five million shares in Abingdon Health to the owners of IVDeology.
The initial consideration of 0.5m would be subject to a 12-month lock-in agreement, with additional shares potentially issued based on achieving certain revenue targets in the two financial years following acquisition.
IVDeology recorded a combined turnover of 0.39m in the financial year ended 31 January, with net assets valued at 0.04m on the same date.
"The acquisition of IVDeology is in line with Abingdon's strategy of providing our customers with all the pieces of the jigsaw required to bring products from idea to commercial success," said chief executive officer Chris Yates.
"The IVDeology team will strengthen Abingdon's existing knowledge leadership and regulatory expertise.
"We look forward to working with the IVDeology team and supporting existing and new customers in navigating a regulatory environment going through a period of significant change."
At 1251 BST, shares in Abingdon Health were up 7.13% at 10.44p.
Reporting by Josh White for Sharecast.com.