Modern Water acquires toxicity testing technology division
Aim-listed Modern Water Group (MWG) has acquired toxicity testing technology Microtox for $4.5m in a bid to accelerate sales in its water quality testing and monitoring technologies global distribution network.
The acquisition of the Microtox division, which is owned by Delaware based Strategic Divisions (SDIX), is expected to complete by the close of 2011, and the consideration for the acquisition was paid in cash and funded out of MWG's existing cash reserves.
MWG, which owns a large portfolio of water technologies for water monitoring, said that is acquired Microtox as a result of its complementary technology, products and geographic focus to the Group's existing water monitoring business.
As part of the deal, MWG is set to takeover the division's intellectual property, current inventory and commercial contracts, equipment and staff. These assets will be acquired by the Group's new subsidiaries in the UK and US.
Commenting on the acquisition, MWG chief executive Simon Humphrey, said: "There are clear synergies between our existing portfolio of water monitoring products, as both Cymtox and Microtox use the same platform bioluminescent technology for water toxicity monitoring.
"Our combined expertise in bioluminescence provides a strong base for future product development. Microtox sales will benefit from the distribution channels Cogent and Cymtox have established in China and Asia, whilst sales of our existing products will be enhanced by the strength of the sales team and distribution partners we are acquiring in the US and Canada."