Novarum DX, the mobile software arm of BBI Solutions, has been bought out by a small group of investors led by Innova Partnerships and the existing management.
The deal should let the company build on its lateral flow test customer base and extend into adjacent markets.
A group of investors – including Innova Partnerships, Orchard Ventures, the existing Novarum chief executive Neil Polwart and past chair Dennis MacPhail – bought out the business that specialises in reading lateral flow tests with smartphones.
Novarum, which was bought by BBI in 2016, also has customers in aviation, veterinary and pharmaceutical development.
Polwart explained: “The team have some exciting possibilities in the pipeline and are confident that their technical expertise, and the experience of the investors, across software and healthcare will transform the way we operate.
“We will continue our close working relationship with BBI to maximise the benefit to both customer bases.”
Welsh company BBI – which sold the company for an undisclosed sum – is the world’s largest independent producer of immuno-diagnostics reagents.
Chief executive Mario Gualano commented: “Novarum has been part of the BBI portfolio for the past seven years and we will maintain a close relationship going forward for the benefit of current and future lateral flow customers looking for a complete solution.
“The sale represents a strategic move, which will allow Novarum DX to expand its software-based solutions beyond lateral flow and BBI to sharpen our focus on our core diagnostics business.“
The new owners, NDX Holdings, is building its strategy on the firm’s intellectual property, including a recently granted US patent to deliver a mixture of app development services, software-as-a-service solutions and modular software capabilities.
Combined with APIs for data upload and Electronic Health Record integration, Novarum claims to have the ability to provide entire solutions for diagnostic customers, or to form strategic partnerships with others.
Polwart added: “When we first started talking about this digital health solution 12 years ago, that idea seemed like a pipedream.
“It is clear Covid has not only rewritten the play book on how diagnostics can work, but has changed the public’s expectations about their role in testing.”
The company employs 14 staff, centred around the Edinburgh area.
For the press release see: