Entering text into the input field will update the search result below

PositiveID (PSID) Completes $1.2M Acquisition of MFSI, Complementary Technology

May 24, 2011 6:08 PM ETPSID
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Seeking Alpha Analyst Since 2008

QualityStocks (www.qualitystocks.net) assists publicly traded companies by getting their story out to the investment community while helping investors discover emerging companies with plenty of growth potential. Our name, QualityStocks, emphasizes our commitment to connect subscribers with companies that have huge potential to succeed in the short and long-term future. QualityStocks provides investor relations services to publicly traded companies in exchange for compensation. The content we provide via Seeking Alpha may be part of our efforts to widen a client’s exposure. To read our full disclaimer, visit http://disclaimer.qualitystocks.net.

PositiveID Corp. develops medical technologies for diabetes management, clinical diagnostics and bio-threat detection, seeking opportunities to expand into the clinical diagnostics market. In line with this plan, the company has acquired MicroFluidic Systems (MFSI), a company focused on the production of automated instruments for a broad spectrum of applications to detect and process biological samples.

Founded in 2001, MFSI has established a portfolio of intellectual property related to sample preparation and rapid medical testing applications that complement PositiveID’s portfolio of virus detection and diabetes management products.

MFSI has received more than $45 million in government contracts, most of which stem from the Department of Homeland Security.

“MFSI has had a successful history for the last decade in winning government contracts for our pathogen detection systems. As we look to expand into the clinical diagnostic market, we believe that being a part of PositiveID enables us to move more quickly and nimbly to play in this large and potentially lucrative space. We plan to begin marketing our assays for the commercial healthcare market immediately as PositiveID multiplexed bio-threat assays,” Dr. M. Allen Northrup, president and CEO of MFSI, stated in the press release.

MFSI has two main products: its M-BAND (Microfluidics-based Bioagent Autonomous Networked Detector) and Dragonfly solutions.

The M-Band pathogen detection system is a highly sensitive, early alert warning system that monitors for a biological attack by continuously analyzing air samples for the detection of bacteria, viruses and toxins with results in as little as two hours.

MFSI’s Dragonfly product consists of small microfluidic cartridges for biological sample processing and detection for clinical sample processing and detection, and biodefense applications. The cartridges provide results in minutes for a range of applications, including human papilloma virus, antibiotic-resistant bacteria (such as MRSA), forensic applications, E. coli, and other bio-threat agents.

“We believe MFSI, a company with a rich history of government contracts and a strong pipeline of future opportunities, provides us a platform to significantly grow our company and intellectual property portfolio,” Scott R. Silverman, Chairman and CEO of PositiveID, stated in the press release. “The addition of MFSI’s M-BAND and Dragonfly products enables us to grow into new markets such as homeland security, as well as improve and expand our applications for the clinical market.”

The deal is valued at $1.2 million, $950,000 of which was paid in PositiveID common stock; the remainder was paid in cash. Total potential consideration for the acquisition is $8.2 million through 2014 based on revenue and earnings targets over the four-year period.

For more information visit PositiveIDCorp.com

Please see disclaimer on QualityStocks website: disclaimer.qualitystocks.net

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.