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Qiagen Boosts Nucleic Acid-Purification Business with GenoVision Acquisition

This article has been updated to include comment from a Qiagen official.

 

NEW YORK, May 28 - Qiagen's nucleic acid-purification business will get a kick in the pants after the Dutch genomics firm closes its acquisition of Norwegian rival GenoVision.

Venlo-based Qiagen is banking that GenoVision's  ability to develop reagents and solutions for certain nucleic acid-diagnostic markets, such as the HLA market, will help bolster its own position in the increasingly competitive DNA-purification marketplace.

 

GenoVision uses magnetic-bead technology in its instruments and consumables for low- to medium-throughput automated nucleic-acid purification. These products are compatible with Qiagen's high-throughput BioRobot systems, according to Qiagen. GenoVision, based in Oslo, is readying to launch additional products based on its magnetic-bead technology.

 

The deal, which will cost Qiagen roughly $28 million in cash and stock, will boost 2002 revenue by $5 million and increase losses by $1 million. In 2003, the purchase is expected to raise by $13 million Qiagen's revenue and realize a $1 million net profit, Qiagen said in a statement.

Qiagen also will pay a fee of up to $3 million based on GenoVision's performance in the year following the acquisition and incur charges of approximately $2.5 million. The acquisition is expected to close at the end of June, Qiagen said.

 

In an interview, Solveigh Mahler, Qiagen's manager of investor relations, said that each of GenoVision's 35 employees will retain their jobs under Qiagen. The only ones who will leave, she said, will do so by choice.

 

In April, Qiagen bought tiny Alabama-based Xeragon for about $8 million as part of its goal of expanding its oligonucleotide business.

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