May 29 2010
Life Technologies Corporation (NASDAQ:LIFE), a provider of innovative life science solutions, announced today that it has concluded its tender offer and acquired a majority stake in Geneart AG, the global leader of the synthetic gene market segment.
The combination of Geneart with Life Technologies’ resources and commercial capabilities creates a well-capitalized synthetic biology company with advanced technology and production capabilities, providing products to fuel innovation in this emerging field.
Geneart’s expertise is in the production of synthetic genes, a rapidly-growing area of biology where pieces of DNA can be assembled in the lab and used to create and modify cells. Synthetic biology can result in products used in many applications that could lead to improvements in human health, energy, the environment, and other areas.
Geneart has extensive synthetic gene technology, production, research and development and commercial capabilities, and provides custom synthetic genes and services that can be used for a vast range of applications. Industrial uses of its products include creating enzymes used as detergent additives, constructing bacteria that can break down environmentally toxic polymers or development of DNA and protein-based drug candidates.
“The burgeoning field of synthetic biology is filled with opportunities where many of Life Technologies’ genomic and sequencing products already play lead roles,” said Gregory T. Lucier, Chairman and Chief Executive Officer of Life Technologies. “Just as Life Technologies is a pioneer in genetic sequencing, cloning and regenerative medicine, we will be able to directly participate and lead in synthetic biology by offering the tools our customers need to accelerate discoveries in this emerging field.”
“Through Life Technologies, Geneart will be able to materially expand its impact through enhanced distribution and commercial capabilities in the United States, scale in procurement and access to research and development capital,” said Prof. Dr. Ralf Wagner, Chief Executive Officer and Chief Scientific Officer of Geneart.
Deal Terms
On April 9, 2010, in an all-cash-for-shares offer, Life Technologies purchased approximately 2.6 million shares (approximately 59 percent of the common outstanding shares) of Geneart stock at EUR11.59 per share, representing the stake held by management, founders and early venture capitalist investors. Life Technologies then initiated on April 13, 2010 a voluntary public tender offer to purchase all remaining shares of Geneart. At the close of the tender offer period at midnight Central European time on May 25, 2010, shareholders of Geneart had tendered in aggregate approximately 554,000 shares of Geneart common stock at EUR13.75 per share, providing Life Technologies with a total ownership of approximately 74 percent of Geneart. Geneart reported sales of EUR17 million in 2009. Life Technologies does not expect this transaction to have a material effect on its business in fiscal year 2010.
Source: http://www.lifetechnologies.com/