Safeguard expects to receive aggregate cash proceeds of $17.4m, which represents an approximate 1.9x cash-on-cash return. As part of the acquisition, $1.7m of such proceeds will be held in escrow for approximately 18 months.

Safeguard healthcare managing director and Alverix board chairman Dr Gary J Kurtzman noted the company deployed capital into Alverix with the notion that high performance near-patient testing was a significant market opportunity.

"Alverix’s platform technology, which is based on low-cost optoelectronic components and sophisticated detection algorithms, proved that laboratory quality results could be achieved at the point of care.

"BD saw value in Alverix’s platform early on and has been co-developing and commercializing the BD Veritorâ„¢ System. As a result, BD was a natural acquirer to continue its investment in next-generation point-of-care instruments and platforms," Kurtzman added.

Safeguard has deployed $9.4m in Alverix since October 2007 and prior to the acquisition had a 49% primary ownership position.

Alverix’s legal and financial advisers on the transaction were DLA Piper and Aquilo Partners.