Inverness Medical plans $100 M senior note offering to fund acquisition

Inverness Medical to offer $100 M in senior notes

WALTHAM, Mass. — Diagnostic test maker Inverness Medical Innovations Inc. said Tuesday it plans to offer $100 million in senior notes due in 2016 to help fund its acquisition of Free & Clear Inc.

Inverness said Monday it agreed to acquire Seattle-based Free & Clear Inc. for $100 million cash and up to $30 million in future contingency payments.

Free & Clear specializes in programs addressing chronic disease and had $47.1 million in 2008 revenue, Inverness has said. The acquisition is expected to close on or around Sept. 28, and the contingency payments will depend on 2010 revenues.

Inverness shares fell about 4 percent, or $1.61, to $39.17 in trading Tuesday.