GSA Daily Staff Report
Published Dec. 18, 2009

Selah Technologies has been acquired by Lab21 Ltd., which plans to locate its U.S. headquarters in Greenville.

The new venture is expected to create 65 jobs in the next five years.

Selah, a startup company that received an early investment from SC Launch, was developed from Clemson University research on advanced materials.

"I have been looking for a partner in the diagnostic industry for some time in order to drive the development and commercialization process for the Selah technology,” said Selah CEO Michael Bolick, who will become president of the new venture, Lab21 Inc. “I expect Lab21 to be a great means to achieve our objectives. We are excited to become part of such a fast-growing and dynamic diagnostic company."

Lab21 Ltd. is a medical diagnostics firm founded in the U.K. The new venture, which also received funding from SC Launch, will focus on oncology at a diagnostic service laboratory that is expected to open in early 2010 at the Next Innovation Center in downtown Greenville.

The new venture also received capital from private investors and Nexus Medical Partners, a private equity firm based in Massachusetts that was one of four firms to receive funds from InvestSC. Invest SC stemmed from the S.C. Venture Capital Investment Act of 2004. The act allowed Invest SC to take out a $50 million line of credit, secured by state tax credits, from Deutsche Bank. Nexus received $20 million of that and already has invested in several South Carolina companies, including a British medical device company called Deltex Medical, which established its U.S. operations in Greenville.

In addition to its investment in Lab21, Nexus helped recruit Lab21 to South Carolina. Dr. Edwin Snape, a co-founder of Nexus Medical Partners, is a member of the Board of Directors of Lab21.

"The Selah merger with Lab21 is an excellent example of Nexus' ongoing commitment to bring quality companies into South Carolina,” Snape said. “Nexus is pleased to support the establishment of Lab21's South Carolina operations to facilitate its entry into the U.S. market."

Lab21’s acquisition of Selah provides the company an opportunity to grow outside of Europe, said Graham Mullis, CEO of Lab 21 Group Ltd.

“Greenville County provides us with an excellent business environment and skilled workforce. We seek to provide our diagnostic testing products and services to a wide range of clients across the U.S. market, and our partners in South Carolina will help us do that. We appreciate all the support we have received from state and local officials," he said.

A press release credited several agencies with helping attract Lab21, including the S.C. Department of Commerce, the S.C. Research Authority, Nexus, the Greenville Area Development Corp., the City of Greenville, NEXT, the Greenville Hospital System, Hughes Development and the Upstate Carolina Angel Network. Assistance also occurred through commitments from the Greenville area Development Corp. and Duke Energy's Carolinas Investment Fund.

"SCRA views the Lab21-Selah integration as a prime example of how effective public-private partnerships are achieving outstanding knowledge economy development results in South Carolina today, said SCRA CEO Bill Mahoney. “The event sequence from Clemson discovery, then licensing to Selah, investments in Selah by SCRA's SC Launch Inc. affiliate and private investment partners, leading to premium acquisition by Lab21, and their ultimate landing of U.S. operations in S.C., demonstrates exactly how the knowledge economy development playbook works.”

The company intends to begin hiring in January. For more information, contact Lab21 Inc. at Lab21Opportunities@SelahTechnologies.com.