Riverside acquires Israeli biomedical device maker

The lower middle market private equity firm has made its first Israel acquisition as an add-on for Hungarian portfolio company Diatron.

The Riverside Company has acquired Israeli biomedical testing company Novamed for an undisclosed amount. Novamed, which makes microbiology and infectious disease testing equipment, is Riverside’s 25th acquisition of 2007.

Riverside plans to merge Novamed with existing portfolio company Diatron, a Hungarian manufacturer of hematology analysers and reagents that Riverside acquired in 2005.

“Novamed’s high-quality proprietary immunodiagnostics and microbiology testing products enrich Diatron’s product lines and expand its potential for penetrating the global healthcare testing market,” Riverside said in a statement.

Since 2005 Riverside has expanded Diatron’s sales territories and established an assembly site near Diatron’s headquarters to “leverage its cost structure and provide additional space for growth”. Riverside’s first add-on acquisition for Diatron. Partner Ferenc Vidovszky and vice president Balazs Tahy led the deal.

This deal is the firm’s first in Israel, which has recently seen a spike in venture activity. Silicon Valley venture firm Draper Fisher Jurvetson agreed in October to partner with Israeli VC firm Tamir Fishman Ventures to seek deals in the country. And this August Citi Venture Capital International made its first investment in Israel, a $20 million (€14 million) commitment to an Israeli venture fund.

Riverside is a lower middle market private equity firm led by co-chief executives Bela Szigethy and Stewart Kohl. The firm has offices in Amsterdam, Atlanta, Brussels, Budapest, Chicago, Cleveland, Dallas, Los Angeles, Madrid, Munich, New York, Prague, San Francisco, Stockholm, Tokyo and Warsaw.

The firm closed its third European fund on €315 million ($215 million) in August. Riverside also manages two other fund families: the Riverside Capital Appreciation Fund and the Riverside Micro-cap Fund. Its last RCAF closed on $750 million in 2003. The firm has nearly $2 billion in assets under management.