Germany-based Orgentec Diagnostika has signed a definitive merger agreement to acquire Corgenix Medical, a developer and marketer of diagnostic test kits.

As part of the deal, Corgenix shareholders will receive $0.27 in cash for each share of common stock, which could value at around $16m.

Corgenix, which sells around 50 diagnostic products, develops and manufactures specialized diagnostic kits for immunology disorders, vascular diseases, bone and joint disorders.

Both companies will provide around 350 tests, primarily enzyme-linked immunosorbent assays (ELISA), which diagnose different conditions such as autoimmune, vascular, infectious disease and organ function.

Orgentec Diagnostika CEO Werner Hofacher said the agreement with Corgenix is an important step toward achieving firm’s strategy of building into a global specialty diagnostics leader.

"It will give us an immediate direct presence in the United States, where Corgenix is highly regarded for its quality and innovation," Hofacher added.

The transaction, which is expected to be completed in the 2014 fourth quarter, is subject to approval by Corgenix shareholders and other customary closing conditions.