PerkinElmer Inc said on Monday it has agreed to buy ViaCell Inc for $300 million.
The deal will expand the PerkinElmer’s genetic screening business with the addition of ViaCell's umbilical cord blood preservation technology.
Under the terms of the deal, PerkinElmer will pay $7.25 per share for all of ViaCell's outstanding shares.
The health and industrial sciences company expects to sell ViaCell's therapeutic businesses, unloading its expensive research and development operations.
Sales of ViaCell's ViaCord technology for the preservation of umbilical cord blood are expected to be in the mid- to high-$60 million range in 2007.
Growth
According to PerkinElmer Chief Executive Gregory Summe this is expected to grow by at least 20 percent per year.
He said: “We think this is a very important investment for our genetic screening business. ViaCell extends our product range on the neonatal side.”
The deal is expected to close this year, subject to shareholder and regulatory approval.
PerkinElmer said the deal, will most likely decrease 2008 earnings per share, but lift earnings starting in 2009.
October 2 2007
Related Links
PerkinElmer
ViaCell