GE Healthcare is acquiring Clarient to accelerate development of cancer diagnosis and characterization tools. A subsidiary of GE will commence a tender offer for all outstanding common and preferred shares of Clarient at $5.00 per common share and $20.00 per preferred share, in each case payable in cash. The transaction values Clarient at approximately $580 million, net of cash and investments as of June 30.
Clarient provides oncology testing and diagnostic services to pathologists, oncologists, hospitals, and biopharmaceutical companies. Its customers are connected to its web-based portal, Pathsite®, which delivers high-resolution images and interpretive reports based on the company’s diagnostic testing.
Since 2005, Clarient's revenues have grown at a 68% compounded annual growth rate. In 2009, it made $91.6 million.
Clarient develops diagnostic markers and tests for the profiling of breast, prostate, lung, colon, and blood-based cancers. The firm also develops companion diagnostic markers for therapeutics in breast, prostate, lung, ovarian, and colon cancers, as well as leukemia and lymphoma.
Clarient’s board of directors has approved the transaction and unanimously recommended that stockholders tender their shares. Stockholders with approximately 47% of Clarient's current outstanding voting stock have agreed to tender their shares in the proposed transaction.
“Adding Clarient's leading technology to our portfolio will accelerate our expansion into cancer diagnostics and therapy-selection tools while strongly enhancing our current diagnostic and life-science offerings,” comments John Dineen, president and CEO of GE Healthcare. “We believe we can build a $1 billion-plus business by developing integrated diagnostic solutions for cancer and other diseases.
“GE Healthcare has built a world-class set of diagnostic, information, and life-science technologies,” Dineen continues. “We are experiencing solid growth in the core business this year, and we see that growth continuing into 2011.”
The global demand for cancer-profiling products and services is predicted to grow from $15 billion in 2009 to an estimated $47 billion by 2015, according to a report put out by BCC Research last month entitled “Cancer Profiling and Pathways: Technologies and Global Markets.”