In the midst of growth investors swarming to the health care and defense sectors, PositiveID Corporation (OTCQB: PSID) recently announced the acquisition of E-N-G Mobile Systems (“ENG”), a leader in mobile labs, homeland security and communications vehicles. ENG has been successfully producing technology vehicles for 25 years, with a strong market share recording an average $4 million in revenue annually for the past decade. ENG’s primary focus is the production of mobile biological and chemical labs. ENG currently has over 400 mobile labs in the field capable of testing for chemical, radiological, biological, nuclear and explosive agents present in the environment. ENG’s track record as a company shows a history of strong leadership, steady growth, and an ability to translate sophisticated ideas into user-friendly tools.
PositiveID, the developer of Firefly Dx, a compact, rapid biological detection system, plans to meld ENG’s technology, design and production expertise with PSID‘s biological detection and diagnostic products to create state-of-the-art mobile lab vehicles. Firefly Dx is a point-of-need, hand-held system designed to deliver molecular diagnostic results using real-time PCR chemistry in less than 30 minutes. The Firefly Dx prototype system can identify an expansive range of biological agents including viruses and bacteria, from influenza to MRSA to E. coli and more, with the use of polymerase chain reaction chemistry, which rapidly amplifies DNA. PositiveID’s Chairman and CEO, William J. Caragol, said, “2015 was a terrific year for PositiveID where we made tremendous strides in several key areas. In December 2015 we made two highly synergistic and strategic acquisitions. One of those acquisitions was E-N-G Mobile Systems, Inc. Our bio-detection products, coupled with their mobile biological and chemical labs, creates another strong foundation towards substantial revenue growth for PSID in 2016. In addition, they bring a high profile book of current customers that include major federal government labs and Fortune 100 companies, along with state and government agencies.”
2016 is expected to be a pivotal year for PSID as they integrate ENG and change the way field testing can be done in terms of location and the time it takes to return results. It is not hard to imagine that countries around the world will look to embrace the convenience of the fully functional mobile labs. In the case of infectious diseases alone, countless live can be saved as detection becomes faster and safer.
The bio-detection market has grown exponentially in recent years. The global PCR market is projected to reach approximately $27.4 billion by 2015, according to Research and Markets’ “Polymerase Chain Reaction (PCR) – Products/Tools – A Global Market Watch, 2009-2015” report. The synergy created by combining the innovative biotechnology of these two companies has the potential to catapult the relatively young, PSID to revenues of $5-6 million in 2016. With revenues totaling $1 million in 2014 and then jumping to an expected $3 million in 2015, this could be an ideal time for investors to jump on this hot, emerging company, while the market cap has not yet shown the positive effects of this merger.
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