OraSure Technologies Inc. of Bethlehem said it has agreed to acquire two companies that will open new markets and add between $4 million and $7 million to its net revenues this year.
OraSure develops, manufactures and distributes oral fluid diagnostic, collection devices, and other technologies designed to detect or diagnose critical medical conditions.
The company said it is buying CoreBiome, a privately held, Minnesota-based early-stage microbiome services provider; and Novosanis, a privately held, Belgian company founded as a spinoff from the University of Antwerp, Belgium.
OraSure said the transactions are structured with an upfront payment and potential additional payments based on future performance.
Stephen Tang, president and CEO of OraSure said the transactions should close no later than next week and reaffirmed the company’s 2018 financial guidance for the fourth quarter.
OraSure expects net revenue to range from $46.5 million to $48 million for the fourth quarter, representing revenue growth of 7 percent over 2017.
“We have a stated strategy to be an innovation growth company,” Tang said. “We felt it was the right time and the right deal at the right valuation.”
CoreBiome’s technology provides characterization of microbial diversity and function, paired with machine learning and expert analytics, serving customers in the pharmaceutical, agricultural and research communities.
“CoreBiome gives us the ability to not only collect gut microbiome samples but also analyze them,” Tang said. “Now we can provide data and not just collection devices.”
Novosanis is an early commercial-stage producer and distributor of urine sample collection devices targeted primarily at the liquid biopsy, sexually transmitted infection screening and urological cancer markets.
Its main product technology is Colli-Pee, a device designed for standardized collection of first-void urine for use at a clinic or home.
In addition to acquiring the businesses, OraSure will acquire the employees as well. Tang declined to disclose the number of employees.
Tang said he believes OraSure will continue to get bigger this year, which would include additional acquisitions.
“We have our eye on a number of companies,” Tang said.