Corgenix Medical said today it agreed to be acquired by Orgentec Diagnostika for about $16 million, creating a combined company with an extended global distribution network and a broader portfolio of specialty diagnostic assays.
The deal is subject to approval by Corgenix shareholders and other customary closing conditions, and is expected to close by the end of the year. Corgenix’ board of directors has already approved the companies’ definitive merger agreement.
Once the deal is completed, Corgenix will remain headquartered in Broomfield, CO, as a subsidiary of Orgentec. The combined company will serve thousands of hospitals and reference laboratories throughout Europe and the U.S., as well as in Asia, Latin America, and the Middle East, Corgenix said.
The combined company will also offer more than 350 tests, primarily enzyme-linked immunosorbent assays (ELISA) for diagnosing conditions that include autoimmune, vascular, infectious disease, and organ function.
Those include the more than 50 diagnostic products now marketed by Corgenix. They include specialized diagnostic kits for immunology disorders, vascular diseases—including the world’s only non-blood-based test for aspirin effect—bone and joint disorders, and detection products for viral hemorrhagic disease.
Corgenix also contract develops and manufactures products for medical and life science companies at its facilities in Colorado.
For German-based Orgentec, the deal is its first step toward growing into a leading global specialty diagnostics company by giving it an immediate presence in the U.S. The deal is also Orgentec’s first expansion move since partnering with Water Street Healthcare Partners, a strategic investor focused exclusively on the healthcare industry
The agreement to acquire Corgenix is Orgentec’s first significant step toward expanding its position in the global specialty diagnostics market. Orgentec, which was founded in 1988, announced its partnership with Water Street in May.
“Together, we will offer a unique portfolio of complementary tests and automated instruments that help health care providers diagnose rare conditions and diseases across key medical specialties,” Werner Hofacher, Orgentec’s CEO, said in a statement.
At 27 cents cash per share, the deal’s per-share price represents a 29% premium to the Corgenix average share price of 21 cents over the 90-day period before the company announced on March 12 that it was exploring strategic alternatives.
“After a robust auction process and a thorough review of all alternatives, including staying as an independent company, the company’s Board of Directors strongly believes that acceptance of the Orgentec offer is the best choice to maximize our shareholders’ value,” Corgenix President and CEO Douglass Simpson stated .