Iris International Inc. said late Tuesday that it signed a letter of intent to acquire some of its distribution business in the United Kingdom and Germany from Werfen Group, its current European distributor.

The Chatsworth manufacturer of automated diagnostics systems for urine and other bodily fluids said it and Werfen are negotiating price and a definitive acquisition agreement. It expects to close the deal by the end of December.

The assets consist primarily of customer leases and service contracts for installed Iris instruments, which will help the company to expand its direct sales in that region. Werfen will continue to represent Iris in nine countries, including Spain, Italy and Mexico.

“While modest in size, this acquisition is of strategic importance for Iris to increase our direct sales presence within our international sales channels, and will serve as a template for further potential deals in opportunistic territories,” said Chief Executive Cesar Garcia said in a statement.

Prior to the announcement, Iris shares closed down 24 cents, or 2 percent, to $11.32 on the Nasdaq.