Quidel, provider of rapid point-of-care diagnostic tests, has signed a definitive agreement to acquire privately held Diagnostic Hybrids for approximately $130m in cash.

Diagnostic Hybrids, based in Athens, Ohio, manufactures in vitro diagnostic assays used in hospital and reference laboratories for a variety of diseases, including viral respiratory infections, herpes, chlamydia and other viral infections, and thyroid diseases.

Diagnostic Hybrids leverages its antibody development and cell culture expertise to develop new products that address significant market opportunities. The company’s direct sales force serves over 700 North American customers, and its products are sold via distributors outside the US, said the company.

Quidel plans to operate Diagnostic Hybrids as a separate subsidiary, and Dr Scholl will remain as president of Diagnostic Hybrids and become a senior vice president of Quidel.

The acquisition is subject to customary closing conditions including expiration of the waiting period under the Hart-Scott-Rodino Act, and is expected to close in the first quarter of 2010.

Douglas Bryant, president and CEO of Quidel, said: “This is an exciting acquisition for Quidel as it meets our criteria as a financially sound and strategic opportunity to grow our business. Diagnostic Hybrids and its products are highly regarded in the industry, the company has a leading market share, and its product development pipeline sets a continuing positive trajectory for its business.

“In the hospital segment, direct fluorescent assays fill a customer need that is not met by point-of-care lateral flow or molecular diagnostics assays. The combined company will offer the marketplace a continuum of diagnostic tests for triaging patients, confirming diagnoses and providing actionable results to improve patient care.”