SD Biosensor Inc., a South Korean developer of COVID-19 test kits, said Friday it will acquire US diagnostic kit maker Meridian Bioscience Inc. for about 2 trillion won ($1.53 billion) in an effort to bolster its overseas operations.

Through a consortium formed with SJL Partners LLC, a private equity fund, SD Biosensor said it has entered into an agreement with Meridian Bioscience to acquire the Cincinnati, Ohio-based company in an all-cash transaction.

SD Biosensor will own about 60 percent of Meridian Bioscience and SJL the rest.

Meridian Bioscience also officially announced the agreement on its website.

Upon completion, the deal will become the biggest by a South Korean medical-related firm in acquiring an overseas company, according to SD Biosensor.

SD Biosensor said it plans to speed up entries and operations in the United States and other overseas markets by utilizing Meridian Bioscience's North American distribution network.

The South Korean company, based in Suwon, about 35 kilometers south of Seoul, also said it expects to reduce investment costs thanks to Meridian Bioscience's preexisting production facilities in the United States, Germany and Canada.

SD Biosensor has recently ramped up investments to expand its overseas presence. In late March, it purchased German-based distributor Bestbion, a major distributor of diagnostic products in the German and Austrian market, for 16 billion won, and also signed a deal to buy Relab SRL, an Italian medical device distributor, for 61.9 billion won in April. (Yonhap)