NEW YORK (GenomeWeb News) – OraSure Technologies announced after the close of the market on Monday that it is acquiring DNA Genotek for $53 million in cash.
The deal, which is expected to be completed in the third quarter, will provide OraSure, based in Bethlehem, Pa., with a complementary portfolio of products for the collection, stabilization, transportation, and storage of high quality nucleic acid samples, the company said.
It also provides OraSure, whose products include antibody-based assays for infectious diseases, with a presence in the molecular diagnostics space. In a statement, Douglas Michels, president and CEO of OraSure, said that his firm has "targeted entry into the US $4 billion molecular diagnostics market given the magnitude and rapid growth profile of the segment."
Headquartered in Ottawa, DNA Genotek develops products to collect, stabilize, and prepare oral fluid samples for molecular diagnostic applications. Its lead product is the Oragene DNA sample collection kit. The company is currently seeking clearance from the US Food and Drug Administration for Oragene products.
In 2010, DNA Genotek generated approximately $14 million in revenues, OraSure said.
It added that the acquisition is expected to be neutral to non-GAAP earnings, excluding transaction costs and required acquisition accounting adjustments, and to be accretive to revenue growth in 2012 and beyond. Following completion of the deal, DNA Genotek will operate as a wholly-owned subsidiary of OraSure.
Deutsche Bank Securities was the advisor to OraSure on the deal. Moelis & Co. advised DNA Genotek.