MDS Buying Molecular Devices for $615M
SUNNYVALE, Calif., and TORONTO, Jan. 29, 2007 -- Canada-based drug developer MDS Inc. today announced it will acquire Molecular Devices Corp., a bioanalytical measurement systems maker located in California, for $615 million in cash.
Under the agreement, which was unanimously approved by the boards of both companies, MDS will acquire all of Molecular Devices' common stock for $35.50 per share. MDS will spend $585 million to buy outstanding shares, plus another $30 million to buy outstanding stock options. MDS said it expected the transaction to be "modestly accretive" in 2007 and "significantly accretive in 2008 and beyond."
Headquartered in Sunnyvale, Molecular Devices supplies systems, reagents and software used by researchers to accelerate and improve drug discovery and other life sciences research. In the four quarters ending Sept. 2006, Molecular Devices reported revenues of $185 million.
In addition to making products that assist drug development, MDS provides medical isotopes for molecular imaging, radiotherapeutics and analytical instruments. It has 8800 employees in 28 countries.
MDS said it will create a new business unit that will combine Molecular Devices and MDS Sciex, to be led by MDS Sciex President Andy Boorn. The combined company will have more than 1100 employees, including over 250 scientists and engineers. The MDS Sciex and Molecular Devices brand names will continue to exist under the new business unit, MDS said, and MDS Sciex will continue to expand its mass spectrometry franchise by working with its joint venture partners Applied Biosystems and PerkinElmer.
"I am proud of what we have built at Molecular Devices and view this as a great combination," said Joe Keegan, president and CEO, Molecular Devices Corp. "We believe this acquisition is great news for our employees and our shareholders. By joining with MDS Sciex, the combined company will have a unique opportunity to bring innovative products to leading life sciences customers."
MDS said it expects to save $10 million to $12 million ($7 million in fiscal 2007) by consolidating the two companies.
The transaction is subject to regulatory and other customary closing conditions and is expected to close in the second quarter of 2007.
For more information, visit: www.mdsinc.com
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- mass spectrometry
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