Transaction includes $1 million in cash and earn-out based on 20% of the revenue generated by these businesses over three years.
Digilab bought a part of Harvard Bioscience’s (HBIO) capital equipment business segment for $1 million in cash plus additional consideration over a three-year period. HBIO’s genomic solutions division and Belgian subsidiary, Maia Scientific, will thus add to Digilab’s products and services offerings.
“The acquisition of Harvard Biosciences genomics solutions and Maia Scientific businesses broadens our global footprint in both the life sciences research preanalytics market and our commitment to provide downstream systems and solutions using novel sample prep, biomarker, and spectroscopy methods to the point of need in healthcare, process control, and safety and security markets,” comments Sidney Braginsky, executive chairman of Digilab.
Under the asset purchase agreement, besides the $1 million in cash, HBIO will receive an earn-out based on 20% of the revenue generated by the acquired businesses through Digilab over the next three years once the transaction is completed.
HBIO retains the rights to certain deferred tax assets, which are currently offset by valuation allowances. The company intends to pursue a sale of the COPAS flow cytometry product line, which was not included in this transaction.
“The completion of the divestiture of the majority of our capital equipment business segment will allow the HBIO management team to focus our resources on our apparatus and instrumentation business and to continue our pursuit of tuck-under acquisitions,” remarks David Green, president of HBIO.