Quanterix Expands Capabilities with Strategic Acquisition of EMISSION

Rhea-AI Summary

Quanterix (NASDAQ: QTRX) announced the acquisition of EMISSION, a Georgetown, TX-based manufacturer of magnetic beads for diagnostic assays. The acquisition, valued at $10 million upfront with potential additional payments of up to $60 million based on technical and performance milestones, is expected to close in January 2025.

This strategic move aims to vertically integrate EMISSION's proprietary bead technology, securing core components for Quanterix's next-generation Simoa platform and enabling OEM opportunities with third-party platforms. The transaction is anticipated to be accretive to revenue and gross margins in 2026.

Positive

• Strategic vertical integration securing critical technology component
• Potential for new revenue stream through OEM business
• Transaction expected to be accretive to revenue and gross margins by 2026
• Deal structure preserves cash with milestone-based payments

Negative

• Initial $10M cash outlay impacts current cash position
• Up to $60M in additional payments may strain future cash flows
• Revenue and margin benefits not expected until 2026

Insights

Financial Analyst

The $10 million upfront acquisition of EMISSION represents a strategic move to vertically integrate key technology components. With potential additional payments of up to $60 million tied to performance milestones, the deal structure minimizes immediate cash impact while aligning incentives. The transaction's expected accretion to revenue and margins in 2026 suggests a well-planned integration timeline. This vertical integration should improve Quanterix's cost structure and expand their addressable market through OEM opportunities. The company's $422 million market cap and ability to fund the acquisition through cash on hand indicates solid financial positioning. The milestone-based payment structure provides flexibility and reduces risk, as additional payments are tied to successful execution and likely to be funded through resulting business growth.

Tech Expert

The acquisition of EMISSION's proprietary magnetic bead technology represents a significant technological advancement for Quanterix. By controlling this critical component, they're strengthening their position in the ultrasensitive biomarker detection market. The technology's validation on their upcoming Simoa platform demonstrates strategic foresight in product development. The ability to supply OEM beads to non-Quanterix platforms opens new revenue streams and market opportunities. EMISSION's expertise in large-scale, highly-uniform dye-encapsulating magnetic beads is particularly valuable for low and mid-plex assays, complementing Quanterix's capabilities. This vertical integration enhances their competitive position and provides greater control over quality and supply chain.

Builds technology capabilities through vertical integration of proprietary bead technology and drives OEM business

BILLERICA, Mass.--(BUSINESS WIRE)-- Quanterix Corporation (NASDAQ: QTRX), a company fueling scientific discovery and breakthrough diagnostics through ultrasensitive biomarker detection, today announced the acquisition of EMISSION iNC. (“EMISSION”). Quanterix expects the transaction will close in January 2025.

“As we expand our technology stack toward higher multi-plex and multi-omic capabilities, it is imperative we control core components,” said Masoud Toloue, Chief Executive Officer of Quanterix. “EMISSION’s proprietary bead technology has already been validated on our upcoming new Simoa platform and will enable us to provide OEM beads to other non-Quanterix platforms. We look forward to welcoming EMISSION’s innovations and colleagues to the Quanterix team.”

EMISSION is based in Georgetown, TX and manufactures large-scale, highly-uniform dye-encapsulating magnetic beads designed for low and mid-plex assays and a mid-plex platform that reads its proprietary beads. Vertically integrating EMISSION will allow Quanterix to secure the use of EMISSION’s highly controlled beads in Quanterix’s next generation platform and to develop a new multi-plex segment targeting third-party OEM customers.

Van Chandler, CEO of EMISSION said, “EMISSION was built on our high-quality bead technology and we believe that better beads and ultimately better multi-plex assays should be within everyone’s reach. Having known and worked with the Quanterix team for years, we are excited to join forces, as we support the upcoming Simoa platform and a shared vision for expanding the technology’s reach to all labs.”

Under the terms of the agreement, Quanterix will use cash on hand to acquire EMISSION for $10 million, with an additional $10 million payable upon completion of certain technical milestones. Additionally, EMISSION may receive up to an additional $50 million in earnout payments, contingent upon the achievement of certain performance milestones, which we expect will be primarily funded through cash generated from achievement of the earnout criteria. The transaction is expected to be accretive to revenue and gross margins in 2026.

About Quanterix

From discovery to diagnostics, Quanterix’s ultrasensitive biomarker detection is fueling breakthroughs only made possible through its unparalleled sensitivity and flexibility. The Company’s Simoa® technology has delivered the gold standard for earlier biomarker detection in blood, serum or plasma, with the ability to quantify proteins that are far lower than the Limit of Quantification (LoQ) of conventional analog methods. Its industry-leading precision instruments, digital immunoassay technology and CLIA-certified Accelerator laboratory have supported research that advances disease understanding and management in neurology, oncology, immunology, cardiology and infectious disease. Quanterix has been a trusted partner of the scientific community for nearly two decades, powering research published in more than 2,900 peer-reviewed journals. Find additional information about the Billerica, Massachusetts-based company at https://www.quanterix.com or follow us on Twitter and LinkedIn.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Forward-looking statements may include statements regarding the expected timing of the closing of the transaction, payment of the purchase price and the expected strategic, operational and financial benefits of the acquisition. Forward-looking statements in this press release are based on Quanterix’s expectations and assumptions as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties. Factors that may cause Quanterix’s actual results to differ from those expressed or implied in the forward-looking statements in this press release include risks relating to the timing of the closing of the transaction and risks and uncertainties regarding Quanterix’s ability to realize the intended strategic, operational and financial benefits of the transaction, as well as the risk factors and other considerations discussed in Quanterix’s filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” sections contained therein. Except as required by law, Quanterix assumes no obligation to update any forward-looking statements contained herein to reflect any change in expectations, even as new information becomes available.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241217600200/en/

Media:

Marissa Klaassen

media@quanterix.com

Investor Relations:

Joshua Young

ir@quanterix.com

Source: Quanterix Corporation

FAQ

How much is Quanterix (QTRX) paying for EMISSION acquisition?

Quanterix is paying $10 million upfront, with potential additional payments of $10 million for technical milestones and up to $50 million in earnout payments based on performance milestones.

When will the QTRX acquisition of EMISSION close?

The acquisition is expected to close in January 2025.

What are the financial benefits of QTRX's EMISSION acquisition?

The acquisition is expected to be accretive to revenue and gross margins in 2026, and will enable new OEM business opportunities.

How will EMISSION's technology benefit Quanterix (QTRX)?

EMISSION's bead technology will be integrated into Quanterix's next-generation Simoa platform and enable OEM opportunities with third-party platforms.

When will QTRX shareholders see financial benefits from the EMISSION acquisition?

The financial benefits are expected to materialize in 2026 when the acquisition becomes accretive to revenue and gross margins.