Inverness Buying Free & Clear for Up To $130 Million

Inverness Medical Innovations Inc. (NYSE: IMA) has agreed to acquire Free & Clear Inc., a Seattle-based provider of health risk services. The deal includes a $100 million up-front cash payment and up to $30 million in earn-outs based on 2010 revenue. Free & Clear raised around $19 million in VC funding since 2003, from firms like Kaiser Permanente Ventures, Polaris Venture Partners and Three Arch Partners.

PRESS RELEASE

Inverness Medical Innovations, Inc. (NYSE: IMA), a global leader in enabling individuals to take charge of their health at home through the merger of rapid diagnostics and health management, announced today that it has agreed to acquire Free & Clear, Inc.

Headquartered in Seattle, Washington, Free & Clear specializes in evidence-based programs which address the four key modifiable health risks that contribute to chronic disease: tobacco use, poor nutrition, physical inactivity and stress. Free & Clear, which recognized $47.1 million in 2008 revenues, will be acquired by Inverness’ Alere health management business through a merger transaction for $100 million cash and up to $30 million in future contingent payments based on 2010 revenues. The acquisition is subject to customary closing conditions but is expected to close on or about September 28, 2009.

By developing new capabilities in near-patient diagnosis, monitoring and health management, Inverness Medical Innovations enables individuals to take charge of improving their health and quality of life. A global leader in rapid point-of-care diagnostics, Inverness’ products, as well as its new product development efforts, focus on infectious disease, cardiology, oncology, drugs of abuse and women’s health. Inverness is headquartered in Waltham, Massachusetts.