NEW YORK, Aug. 7 (GenomeWeb News) - Pyrosequencing will acquire Swedish neighbor Personal Chemistry in order to bolster its customer base, the companies said today.
Terms of the acquisition call for Pyrosequencing to buy 94.1 percent of Personal Chemistry's shares, and purchase the remaining shares through a separate agreement with the holders of options in Personal Chemistry. The acquisition will be worth approximatyely SEK89 million ($11 million) to Pyrosequencing.
When the transaction is concluded, which is expected to take place over the next two weeks, the shareholders of Personal Chemistry will control 40 percent of the shares and votes in Pyrosequencing.
The new company will have cash assets of more than SEK400 million, which "will make it possible to acquire complementary companies," said Jeff Bork, chairman of Pyrosequencing.
"A merger between Pyrosequencing and Personal Chemistry is a logical stage in the development of the companies, since global market processing and sales now have the highest priority," said Ove Mattsson, chairman of Personal Chemistry.
Personal Chemistry was founded in 1998 to develop microwave-assisted organic-chemistry technology called Coherent Synthesis. This platform comprises instruments and reagents that that were designed to hasten reaction times in drug discovery. The company headquartered in Uppsala and employs 100 people. Their disposition following the acquisition was not immediately clear.
The deal "is to be seen as the first step in an ongoing process for creating value and for restructuring," he added.
Personal Chemistry's principal shareholders--HealthCap, Investor Growth Capital, 3i, SEB Foretagsinvest, Soren Nygren, Bankinvest, SEB fonder, and Bengt Falk--support the acquisition, according to Pyrosequencing. Pyrosequencing's principal shareholders, Pal Nyren, HealthCap, and Mathias Uhlen support the acquisition.
Personal Chemistry had net sales in 2002 of around SEK104 million, according to the company. Personal Chemistry posted an operating loss of around SEK132 million. So far this year, Personal Chemistry has net sales of approximately SEK31 million. Year to date, Personal Chemistry had around SEK47 million in "liquid funds."
Pyrosequencing's board intends to call an "extraordinary general meeting" soon.
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