NEW YORK (GenomeWeb News) — Orchid Cellmark said yesterday it plans to buy Reliagene Technologies, a forensic and paternity DNA-analysis company, for $5.6 million in cash and $3 million in Orchid Cellmark restricted common stock.
Reliagene, which earned $7.5 million in revenue in 2006, “fits the criteria we are seeking in accelerating the growth of our business through acquisitions,” Orchid CEO Thomas Bologna said in a statement.
He said there is “essentially no customer overlap” between the two companies, and “the combined forensic casework, CODIS, and paternity laboratory testing volumes should increase our operational efficiencies.”
Bologna added that Orchid expects the acquisition to begin to be accretive in the second half of 2008.
Financial details were not disclosed, but Orchid said the selling price may change based on Reliagene’s working capital, and part of its payment will be held in escrow until “certain conditions, including the seller’s indemnification obligations,” are met.