MDS Offers to Acquire Molecular Devices in Major Expansion of MDS Sciex Business
News Feb 02, 2007
MDS Inc. and Molecular Devices Corporation have announced that they have signed a definitive agreement pursuant to which MDS will acquire Molecular Devices, a provider of high-performance measurement tools for high content screening, cellular analysis and biochemical testing, in a US$615 million cash transaction.
Under this agreement, MDS proposes to acquire all of the common stock of Molecular Devices for US$35.50 per share.
The definitive agreement has been unanimously approved by the Boards of both companies. MDS will commence a cash tender offer for all of the outstanding shares of common stock of Molecular Devices.
By acquiring Molecular Devices, MDS expects to strengthen its leadership position as global providers of life sciences solutions. It will now offer systems that provide high content screening, cellular and biochemical testing for leading drug discovery and life sciences laboratories in pharmaceutical, biotechnology, academic and government institutions.
As a result of this acquisition, MDS plans to create a new business unit that will combine the Molecular Devices and MDS Sciex businesses. It will be led by the current President of MDS Sciex, Andy Boorn Ph.D, who will oversee its integration and management.
The combined organization will have more than 1,100 employees with over 250 scientists and engineers. A strong intellectual property portfolio and pipeline of products will fuel growth in this newly created business unit.
The MDS Sciex and Molecular Devices brand names will continue to exist under this new business unit. MDS Sciex will continue to expand its mass spectrometry franchise by working with its joint venture partners Applied Biosystems and PerkinElmer.
"This exciting acquisition builds upon our MDS Sciex platform, and is a perfect fit with our strategy," said Stephen P. DeFalco, President and Chief Executive Officer, MDS Inc.
"We are thrilled to have the Molecular Devices team join MDS. This acquisition delivers on our commitment to invest in businesses that broaden our capabilities with our customers and provide strong returns for our shareholders."