Initial consideration for PositiveID’s acquisition of MFSI is $1.2m, $950,000 of which will be paid in PositiveID common stock and the remainder of which will be paid in cash.
Total potential consideration for the acquisition is $8.2m through 2014 based on revenue and earnings targets over the four-year period.
MFSI’s biological detection and sample prep technologies are expected to complement PositiveID’s virus detection and diabetes management focus, while providing expanded capabilities for homeland security applications.
MFSI has an intellectual property portfolio, with 12 US Patents granted, 17 US Patents pending, six patent applications in Canada, six patent applications in Europe and four patent applications in Japan.
Since MFSI’s origin, its key personnel have had an important role in developing technologies to automate the process of biological pathogen detection.
Along with Lawrence Livermore National Laboratory, MFSI began developing complex microfluidic systems to perform sample processing and purification for the Defense Advanced Projects Agency (DARPA).
It then developed a similar system, including a thermal cycler for polymerase chain reaction (PCR) analysis, for the US Army’s Edgewood Chemical and Biological Command (ECBC).
In addition, MFSI has received subcontracts and direct contracts with the FBI and Forensic Sciences Service of England for the development of automated human identification systems.
Next, MFSI secured several contracts with the Department of Homeland Security’s Science and Technology Directorate to continue its technology development for autonomous airborne pathogen detection.
MFSI has received over $45m in government contracts, the majority of which have come from the Department of Homeland Security.
PositiveID chairman and CEO Scott Silverman said with their recent announcement of development of a sample prep application for improved biological testing, they believe this acquisition fits very well with the company’s expanded focus on the convergence of diagnostics and biological detection, for both healthcare and homeland security applications.
