Oct. 24--Ann Arbor-based HandyLab Inc. on Friday became the second University of Michigan spin-off firm to be acquired by a multinational company within the last 12 months.

Becton, Dickinson and Co., a New Jersey-based medical technology firm, said it plans to acquire nine-year-old HandyLab, which makes molecular diagnostic testing products. The deal, whose terms were not disclosed, represents a victory for the state's small but growing venture capital industry since most of HandyLab's major investors are Michigan venture capital firms.

"It's the quintessential Michigan venture deal," said Jan Garfinkle, managing director of Ann Arbor-based Arboretum Ventures, one of HandyLab's investors.

Other Michigan venture investors are Ardesta, EDF Ventures and the University of Michigan's Wolverine Venture Fund. HandyLab's acquisition comes almost a year after Johnson & Johnson announced its purchase of HealthMedia Inc., another U-M spin-off.

Becton said it plans to keep HandyLab's operations in Ann Arbor, where it has 62 employees. Jeffrey Williams, HandyLab's CEO and president, declined to comment on the company's revenue. But HandyLab's first product, Jaguar, has done well since its debut in November 2008.

HandyLab and Becton had formed a partnership in May. But later, other companies sought to acquire HandyLab so Becton decided to make an offer, too. HandyLab's cofounders, Sundaresh Brahmasandra and Kalyan Handique, are expected to stay on.

Venture capital was critical for HandyLab. It obtained $75,000 in seed money from EDF and HandyLab's cofounders initially worked out of the venture firm's office in Ann Arbor, said Mary Campbell, EDF's managing director.

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