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NEW YORK, July 18 - Harvard Bioscience said it will buy Genomic Solutions for about $26 million in cash and stock.
Harvard said it will pay Genomic Solutions with 3.2 million shares and $9 million in cash and claims the deal will contribute to revenue and earnings in the fourth quarter and 2003.
The company also said the acquisition will boost by $5 million fourth-quarter revenue and add $20 million to 2003 revenue.
Genomic Solutions said that CEO Jeff Williams, 35, will stay on and will be nominated to join Harvard's board. The fate of Genomic Solutions' other top executives, or its staff, was not immediately clear. However, the firms said Genomic Solutions will undergo a "major restructuring," the company said. A spokeswoman did not return a call for comment at deadline.
Last month, the Nasdaq market issued Genomic Solutions a "deficiency notice" because its stock has failed to stay above $1 for 30 consecutive days. The exchange had given the company 90 days to bring its shares above $1 or risk being delisted to Nasdaq's Over-the-Counter exchange.
News of the acquisition came as a surprise to some analysts who believed that despite its poor stock performance, Genomic Solutions has a relatively firm foothold in a few strong niche markets, including automated protein preparation, high-throughput preparation, and microarray preparation.
Harvard has bet that bringing on board Genomic Solutions as a subsidiary will help Harvard sell its own technology. Harvard also said it thinks Genomic Solutions will use Harvard's databases to uncover leads and use its large marketing arm to sell them.
Harvard said the deal will also try to give Genomic Solutions a strong foothold in Europe and to "leverage" Harvard's relationship with Amersham Biosciences and Genomic Solutions' history with PerkinElmer.
Genomic Solutions had a little more than $7 million in cash as of March 31 and posted a $1.6 million net loss for the the three months ended that day. The company has not yet report financial results for the second quarter, which ended on June 30.