NEW YORK, Feb.13 (GenomeWeb News) - Caliper Life Sciences today said it plans to acquire in vivo imaging company Xenogen in a deal valued at about $80 million.
Under the agreement, Caliper will issue common stock and warrants totaling approximately 32 percent of the company's outstanding common stock on a fully diluted basis, assuming the exercise of warrants. In exchange, Caliper will receive all of Xenogen's equity securities outstanding at the closing, according to a statement.
The transaction is expected to close in the second quarter of 2006.
Caliper said that cost savings from redundancies could total over $10 million, and said the combined companies have sufficient cash resources to close the deal and to fund the combined business through 2006. It said it expects to be cash-flow positive from operations beginning in 2007.
Caliper said the deal would accelerate its revenue growth and cited Xenogen's 30-percent revenue growth during the first nine months of 2004.
The company said the deal would boost annual sales growth "from mid-to-high single digits into a range of ten to fifteen percent."
Caliper said the $10 million in annual savings would come from job cuts in general and administrative positions and facilities costs.
Caliper CEO Kevin Hrusovsky said the deal was paved by the company's previous acquisitions