With the acquisition, ABI gains entry into the consumables market for sample prep, RNAi, microRNA, and gene expression and array products.
"This acquisition is an important component of Applied Biosystems' strategy to drive growth by expanding our consumables product offering," Cathy Burzik, president of ABI, said in a statement today.
The deal, which is subject to regulatory and other condition, is expected to close in the first quarter of 2006.
The business ABI hopes to acquire develops and supplies consumables for stabilizing, synthesizing, handling, isolating, storing, detecting, and quantifying RNA. New products include microRNA and siRNA reagents used to study mechanisms of gene expression.
The market in which this business plays is believed to be around $500 million market and grows more than 10 percent annually, according to ABI. Independent figures could not immediately be obtained.
Ambion's diagnostics and service businesses will become a separate standalone company, Ambion said.
According to ABI, Ambion stands to generate more than $52 million in revenue in 2005, which would be a 22-percent improvement over last year's receipts.
Founded in 1989, Ambion's research division has approximately 300 employees. Ambion's research and development, manufacturing, and other operations will continue to be based in