Serologicals Acquires Upstate and Will Issue Shares to Molecular Devices
Serologicals will acquire Upstate Group for $205 million in stock and cash, according to SEC documents filed this week.
As part of the acquisition, Serologicals will issue shares to Molecular Devices and other Upstate shareholders, the company said in its 8-K filing.
Molecular Devices in 2001 acquired approximately a 20 percent stake in Argonex, the parent company of Upstate Biotechnology, for $10 million in cash. As part of the deal, the companies announced a 10-year strategic partnership to provide new consumable reagent kits to the high-throughput screening market.
The transaction is subject to adjustment for amounts required to repay Upstate’s debts and expenses and Upstate’s working capital on the closing of the deal.
Atlanta-based Serologicals said that it will issue up to 5 million shares its common stock, which closed at $23.23 Tuesday, and the balance of the price will be paid in cash.
Upstate sells cell signaling research reagents to academic, biotech, and pharmaceutical investigators. Serologicals expects the deal will provide the company with a significant presence in the preclinical drug screening and target validation market, with a focus on kinase screening and protein interaction. The firm also said that it expects the Upstate and Chemicon subsidiaries would launch approximately 1,500 new research products per year.