NEW YORK (GenomeWeb) – CareDx today announced it has acquired a majority stake in Swedish transplant diagnostics firm Allenex and plans to buy the remaining shares in the first quarter of 2016. It has also secured a loan commitment for up to $50 million.
Brisbane, California-based CareDx acquired approximately 78 percent of outstanding Allenex shares from that firm's three principal shareholders for a mixed consideration of cash and shares of CareDx. Under the terms of the deal, these principal shareholders' cash payments will be subject to commercial and financial milestones in the fourth quarter of 2015 and Q1 2016.
"Allenex is an ideal strategic fit," CareDx CEO Peter Maag said in a statement. "Through this acquisition, we are executing on our growth strategy. The combined company will offer the opportunity for new product development and growth in a complex and costly area of healthcare."
CareDx said in a statement that the total purchase price of all Allenex shares would be approximately $35 million in cash and stock. To acquire the remaining Allenex shares, CareDx will stage a tender offer of either all cash or a mix of cash and stock. Allenex's board of directors have recommended shareholders accept the tender offer, the firm said.
CareDx's loan commitment is from Oberland Capital SA Davos and will be used in part to fund the acquisition. Of the $50 million loan commitment, $16 million will be used to pay down CareDx's existing loan with East West Bank, CareDx said. An additional $16.5 million will be used to partly fund the Allenex acquisition; the remainder will come from the firm's existing cash resources. As of Sept. 30, CareDx had $34 million in cash and cash equivalents.