MDS to Buy Molecular Devices for $615M in Cash to Expand MDS Sciex Business
NEW YORK (GenomeWeb News) - MDS has signed a definitive agreement to buy Molecular Devices, a maker of high-content screening, cellular analysis, and biochemical testing tools, for $615 million in cash, the companies said today.
The agreement calls for MDS to pay $35.50 per share for all of Molecular Devices’ common stock. The boards of both companies have approved the transaction.
MDS shares closed at $23.88 on Friday.
MDS said it will create a new business segment that combines Molecular Devices with its MDS Sciex business, which will be run by current MDS Sciex president Andy Boorn.
The new segment will have 1,100 employees and 250 scientists and engineers.
MDS said the MDS Sciex business will continue its mass spectrometry partnerships with Applied Biosystems and PerkinElmer following the transaction.
The companies said Molecular Devices will generate $190 million in revenue and $45 million to $50 million in earnings in the first year. Molecular Devices reported $185 million in revenue in the four consecutive quarters ended Sept. 30, 2006.
The transaction is expected to close in the second quarter. The companies said that after merger-related expenses are covered in 2007, the deal should be "significantly accretive" in 2008.
The transaction costs include $585 million for the purchase of outstanding Molecular Devices shares and $30 million for stock options.