Aclara to Merge with ViroLogic

NEW YORK, June 1 (GenomeWeb News) - Aclara Biosciences and ViroLogic have signed a merger agreement to create a molecular diagnostics company for oncology and infectious diseases, the companies said today. The new company will be called ViroLogic.

Under the merger agreement, every share of Aclara stock will be exchanged for 1.7 shares of ViroLogic common stock as well as 1.7 contingent value rights, or CVR, for a total of $4.78 per share. The CVR includes a potential cash payment of up to $.85 per Aclara Share, and is contingent upon the ViroLogic stock price 12 months after the merger is closed.

ViroLogic said it would have $75 million in cash, cash equivalents and marketable securities after the closing of the merger, and prior to any payment made under the CVRs.

The companies will combine Aclara's eTag platform with ViroLogic's laboratory, patient testing and pharmaceutical drug development business. ViroLogic, of South San Francisco, Calif., markets a line of drug resistance tests for HIV and hepatitis.