Nanalysis Enters into a Letter of Intent to Acquire Quad Systems AG
CALGARY, Alberta, Jan. 18, 2022 /PRNewswire/ - Nanalysis Scientific Corp.(TSXV:NSCI, OTCQX:NSCIF, FRA:1N1) ("Nanalysis" or the "Company") is pleased to announce that it has entered into a letter of intent to acquire QUAD Systems AG (Quad Systems), a Zurich-based Nuclear Magnetic Resonance (NMR) company focused on high-field NMR for pharmaceutical and other vertical markets.
Quad Systems and Nanalysis have been working together as strategic partners for over a year in a collaborative OEM agreement to partner going to market with a complete high field NMR product offering. Quad Systems was founded by Dr. Klemens Kessler, who assembled a world class team of very experienced and talented magnetic resonance experts, with a mission to bring back innovation to NMR, which has been stifled over the last decade. Quad Systems holds key patents and IP, as well as important technology partnerships, that will allow it to carve out significant market share in the established billion dollar per year high-field NMR market.
Sean Krakiwsky, founder and Chief Executive Officer of Nanalysis said, "We have developed a common technology platform and manufacturing capability for compact magnetic resonance as well as high-field magnetic resonance. Over 80% of our customers use both. Therefore, in addition to converting our OEM relationship with Quad Systems to a closer partnership, there are also tremendous cross-selling opportunities. We have had roughly 10 of our scientists and engineers embedded with Quad Systems for over a year, and a tremendous amount of collaboration and mutual respect has developed. Recently, Klemens and I came to the conclusion that joining forces made both companies stronger, would optimize our success regarding several critical challenges, and steepen our growth trajectories: We are growing the large untapped market for miniaturized NMR, while they are focused on taking part of the established market."
"An important aspect of competing for global market share in magnetic resonance is critical mass and economies of scale, which this merger will provide. Furthermore, over the last decade customers have suffered from long lead times for support as well as shipments, because of the lack of competition. The market is demanding a fresh approach, and we will fill that void. The market wants democratization as well as miniaturization," concluded Mr. Krakiwsky.
Dr. Kessler added, "We have been working with the Nanalysis team for over a year and are impressed with their world-class manufacturing and R&D capabilities which is complementary to ours. We are enthusiastic about going to market with Nanalysis and serving the global NMR community. Sean and I share a vision of building a company that provides high quality products, ongoing innovation, and full sales and service in every major market in the world. By combining our organizations, we will be taking a big step in that direction."