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Modern Water

Modern Water completes acquisition of Microtox technology for US$4.5 mln

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Desalination and water quality specialist Modern Water (LON:MWG) said it completed the acquisition of the water quality division of Strategic Diagnostics Inc (SDIX), including its Microtox toxicity testing technology.

The acquisition was announced in early November, and Modern Water paid US$4.5 million.

The water quality division of SDIX, based in Newark, Delaware, sells products and services to determine toxicity and detect contaminants in water and soil.  Its two main product groups are toxicity detection using bioluminescence and industrial bio-detection of substances including pesticides, herbicides and PCBs. 

In the year to December 31 2010, the division had revenues of US$4.79 million.

Modern Water said the acquisition of the Microtox brand for water toxicity monitoring will further enhance its offering in this key marketplace. It expects to benefit from synergies as both the company’s Cymtox technology and Microtox use the same platform bioluminescent technology, and the combined expertise in this field provides a strong base for future product development.

There are also geographical benefits to the acquisition as Microtox sales are expected to capitalise on the distribution channels Cogent and Cymtox have established in China and Asia.

Moreover, sales of Modern Water's existing products should be enhanced by the strength of the sales team and distribution partners in the US and Canada, the company added.

Quick facts: Modern Water

Price: £0.02

Market: AIM
Market Cap: £2.3 m
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