This story has been updated from a previous version.
NEW YORK, July 16 – PerkinElmer has agreed to acquire Packard BioScience in a stock deal valued at about $650 million.
According to a statement released by the companies on Sunday, PerkinElmer seemed particularly interested in acquiring Packard BioScience for its liquid handling and sample preparation capabilities.
"Packard BioScience represents an excellent strategic fit as a leading supplier of automated liquid handling, sample preparation tools and advanced biochip technologies," Gregory Summe, CEO of PerkinElmer, said in a statement.
"Liquid handling is a critical, enabling step in both proteomics and genomics workflow, and increases the productivity of our customers' drug discovery processes,” he said, adding that Packard also has an “impressive new product development pipeline.”
"We are as excited about the biochips technology -- the arrays, scanners, etc., -- as we are about fluid handling," said Patrik Dahlen, president of drug discovery at PerkinElmer. Dahlen added that the acquisition would serve as a good starting point to build a protein chip production and services business for PerkinElmer.
Under the terms of the deal PerkinElmer of Boston will exchange 0.311 share of its common stock for each share of Packard BioScience common stock. The deal, which is expected to close in the fourth quarter, also includes net indebtedness.
Packard BioScience is based in Meriden, Conn., and has approximately 1,000 employees and sales in 60 countries in North America, Europe and Asia. The company expects revenues of approximately $200 million in 2001.
Packard BioScience also has a number of strategic alliances with companies such as Motorola, Oxford GlycoSciences, and Waters.
There are currently no plans to lay off employees as a result of the acquisition, according to Dahlen, though he did not discount the possibility.
“Both organizations have been in a build mode for quite some time,” said Dahlen. “As we go forward with the integration, if we do find overlapping areas, we will look at it. [But] nothing is planned now.”
Separately, PerkinElmer said its revenue from its life science business grew 85 percent in the second quarter to $78 million, including revenues stemming from its acquisition of NEN Life Sciences. The company said organic revenue growth totaled 12 percent in the life science business, resulting from growth in both its drug discovery and genetic screening businesses.
Overall, PerkinElmer’s second quarter revenues rose to $390.8 million, compared with $369.5 million, in the year ago period.
PerkinElmer said its second quarter net income jumped to $38.7 million, or 38 cents a diluted share, compared with $32.0 million, or 29 cents a diluted share, in the year ago period.
During the quarter, PerkinElmer, which, in addition to life sciences, operates business in optoelectronics, instruments, and fluid sciences, announced a partnership with MDS Sciex to jointly develop time-of-flight mass spec systems. The company also introduced its first commercially available reagent system to detect SNPs during the quarter.