Sales of umbilical cord blood preservation technology are expected to be over $60 million this year.
PerkinElmer plans to take over ViaCell for approximately $300 million. The acquisition of its umbilical cord blood preservation product, ViaCord, will complement PerkinElmer’s neonatal genetic screening program.
The agreement calls for PerkinElmer to pay $7.25 per ViaCell share, a premium of almost 52%. ViaCell’s stock price spiked, opening the day at $7.15, the highest it’s traded since 2005.
PerkinElmer points out that ViaCell offers expertise in the collection, testing, processing, and preservation of umbilical cord blood stem cells. The firm says, however, that it expects to divest ViaCell’s therapeutic businesses. ViaCord sales are expected to be in the mid-to-high $60 million range in 2007, according to PerkinElmer.
The transaction is expected to close in the fourth quarter of 2007. PerkinElmer anticipates that related to its non-GAAP adjusted earnings per share it will be slightly dilutive in 2008 and accretive in 2009.