Invitrogen signs agreement to acquire molecular probes
Acquisition makes Invitrogen a leader in labeling and detection technology
03-Jul-2003
Invitrogen Corporation today announced that it has signed a definitive agreement to acquire Molecular Probes, Inc. in an all cash transaction for approximately $325 million. Molecular Probes is a privately-held corporation based in Eugene, Oregon that is the leader in fluorescence-based technologies for use in labeling molecules for biological research and drug discovery. The transaction has been approved by the boards of directors of both companies and is anticipated to close, subject to regulatory review, in the third quarter of 2003. Invitrogen expects the transaction to be accretive to its pro forma earnings per share in 2003, and substantially add to pro forma 2004 earnings per share.
"Molecular Probes helps position Invitrogen as a key partner in the drug discovery and development process," said Greg Lucier, Invitrogen's President and CEO. "It will broaden our technology base in proteomics, providing critical tools for discovery research and the accurate Determination of protein function. In an environment where speed is critical to the success of our commercial and academic customers alike, these technologies will facilitate and enhance their research and product development efforts. Moreover, when you combine Invitrogen's global sales network and expertise in other complementary scientific areas, we believe this acquisition creates a powerful recipe for growth."
Molecular Probes is the world's leader in novel fluorescent reagents for molecular and cell biology research. The company's intellectual property portfolio includes over 150 patents and patent applications. The company has fully equipped R&D and manufacturing facilities and a highly-skilled employee base in Eugene, Oregon, as well as facilities in The Netherlands. Molecular Probes had revenues of $56 million in 2002 and is expecting revenues of $66 million in 2003. The company has a strong history of double-digit revenue growth and operating margins above 40%.
"This is an excellent transaction for Molecular Probes' employees and will improve the dissemination of our products and technologies," remarked Richard Haugland, founder and Chief Scientific Officer of Molecular Probes. "A key part of Invitrogen's strategy is to keep our Eugene operations as a center of excellence going forward. And, as a leader in life sciences consumables, Invitrogen's considerable distribution resources will accelerate the penetration of Molecular Probes' core technologies into new markets and extend the benefits our technologies can bring to the understanding of disease processes, the diagnosis of disease and the discovery and development of new drugs that improve the human condition."
"Labeling technologies are important components of both basic scientific research and drug discovery efforts," said John Carrino, Ph.D., Invitrogen's Vice President of Research and Development. "The combination of Molecular Probes' fluorescence-based technologies with our enzymes, cloning systems, and protein analysis tools will provide outstanding opportunities to enhance the discovery process of academic and commercial researchers. The combination of these key labeling technologies with the biochemical and cell-based assay development expertise of our recently acquired PanVera group will further position us to be the premier supplier of solutions for drug discovery and development."
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