Evotec Accelerates Growth Strategy of its Discovery Alliance Business with Acquisition of Indian RSIPL
News Aug 10, 2009
Evotec AG and DIL Limited, India, announced today the signing of a definitive agreement to acquire a 70% controlling majority stake of the drug discovery service company RSIPL for EUR 2.8 million in cash, a portion of which includes a potential earn-out.
Evotec explains that this transaction represents an important capacity expansion for the company. It adds a complementary drug discovery operation and capability in the field of science-driven chemistry work in a cost-effective location to its discovery platform and its ability to deliver high quality, know-how driven drug discovery and development services to its partners on a global scale.
“It is important to strengthen the strategic position of Evotec’s Discovery Alliance Business with the best technology offering and the most efficient global reach and cost strategy. This is a very important step in our strategy “Evotec 2012 – Action Plan to Focus and Grow”, said Werner Lanthaler, CEO of Evotec.
“With this acquisition we reinforce our strategic commitment to deliver the highest value, know-how driven services and build the strongest innovation alliances with our customers. Evotec continues to accelerate its strong track record in Innovation and Process Excellence with the best scientists in the industry,” commented Mario Polywka, COO of Evotec.
“We are happy to undertake this strategic partnership with Evotec in the development of RSIPL and believe in the growth strategy of the Discovery Alliance Business of Evotec. The partnership with Evotec would lend sub-stantially to the growth of RSIPL and we look forward to a successful association with them”, commented Krishna Datla, Managing Director of DIL.
RSIPL, located in Thane near Mumbai, was founded in 2004 and currently employs approximately 160 employees. The company is a 100% subsidiary of DIL, a publicly listed company on the Bombay Stock Exchange. Following the transaction, RSIPL will be integrated, as Evotec India, into the value chain of Evotec’s operations in Hamburg (Germany) and Abingdon (UK).
The deal is expected to close latest in early September, 2009. Evotec has a call option to purchase the remaining 30% from DIL in the future in the event of a change-of-control.
Despite this and the recent acquisition of the zebrafish technology platform, Evotec maintains it guidance to have more than EUR 65 million in liquid funds available by the end of 2009.