QIAGEN Signs Agreement for the Acquisition of eGene
Strategic Transaction adds Capillary Sample Separation Technology Targeting Molecular Diagnostics and Other Applications
QIAGEN N.V. announced, that its subsidiary QIAGEN North American Holdings, Inc. has signed a definitive merger agreement with eGene, Inc. pursuant to which eGene would become a fully owned subsidiary of QIAGEN North American Holdings, Inc. eGene is an early-stage company, that has developed and is commercializing a patented sample separation and analysis technology based on capillary electrophoresis. The transaction has been approved by the boards of directors of both companies and is expected to close, subject to regulatory and stockholder approvals and customary closing conditions in the third quarter of 2007.
Under the terms of the agreement, QIAGEN North American Holdings, Inc. will offer $0.65 in cash and 0.0416 common shares of QIAGEN stock per share of eGene stock. The aggregate purchase consideration amounts to approximately $34.0 million (based on the average closing prices of QIAGEN stock on the NASDAQ Global Select Market for the 20 trading days ending on April 12, 2007). Based on preliminary analyses and assuming the transaction closes early in the third quarter of 2007, QIAGEN expects this transaction to contribute approximately US$2 million in sales in the second half of 2007 and roughly US$7-$9 million in sales for the full year of 2008. QIAGEN expects to incur one-time charges of approximately US$0.01 in EPS at closing, expected in the third quarter 2007. These charges primarily relate to in-process research and development and the write-off of certain assets. On an adjusted basis excluding one-time charges, integration and restructuring costs and amortization of acquired IP, the acquisition is expected to reduce EPS in the second half of 2007 by approximately US$0.01 and to be neutral to earnings in 2008. Beyond 2008, revenues for this product line are expected to grow rapidly and contribute significant accretion to net income as the instrument base expands rapidly and drives increasing consumable usage.
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