NEW YORK (GenomeWeb News) - Commonwealth Biotechnologies has agreed to buy Tripos Discovery Research from Tripos for $350,000 in cash up front and as much as $1.8 million more in follow-up receivables and billings from the TDR business, the companies said yesterday.
Commonwealth will continue to operate TDR from its Bude, UK, location.
The companies said that TDR is also entering a sales-leaseback deal with the Southwest England Regional Development Authority that will net the company roughly $4.2 million and bind it into a 12-year lease on the property in Bude.
Through this deal, Tripos will be released from its grant repayment obligations to SWERDA and to the English Department of Trade and Industry.
CBI said these agreements should close in either May or early June.
In April, CBI entered a material agreement to buy the Discovery Research Business for $2.3 million just days after Tripos had said a group of its own executives would buy the company for around $1.1 million.
CBI's CEO, Paul D'Sylva, said the deal fits its "objective to create a comprehensive drug discovery services company."
Tripos has been trying to sell the Discovery Research business since the fall of 2006, when it said it was looking to liquidate the company. Tripos sold its Discovery Informatics business for $26 million in March to the private equity company Vector Capital.
Tripos CEO John McAlister said the agreement is "an important step in our previously announced plans to sell Tripos' operating businesses and proceed with the liquidation of our company, which we hope to conclude later this year."