Qiagen will also pay $65 million in milestones.
Qiagen is buying Corbett Life Science for approximately $66 million in cash and $4 million in restricted Qiagen common stock. Qiagen will also pay performance and development milestone fees plus other contingencies of about $65 million over the next four years.
The acquisition will better leverage the long-standing relationship between the two companies. Qiagen notes that various instruments, consumables, and regulated tests are already optimized for use with Corbett instruments. “Qiagen already has more than 30 molecular diagnostic assays optimized for the Corbett Rotor-Gene PCR cycler,” points out John Corbett Jr., cofounder of Corbett Life Science. “Many of our customers are Qiagen customers as well.”
Qiagen will continue its open platform strategy to offer tests for use on third-party detection systems. The firm, however, will significantly increase its focus on developing its regulated tests, platforms, and testing technologies for use with the Rotor-Gene and successor systems, which are currently in development.
“Corbett technologies are excellent complements to our portfolio of current and future molecular testing solutions,” remarks Peer Schatz, CEO of Qiagen. “We expect this transaction to contribute significantly to our leading positions in molecular diagnostics, applied testing, pharmaceutical and clinical research, as well as academic research.”
Qiagen anticipates that this transaction will contribute approximately $14 million in sales in the second half and approximately $40 million in sales for the full year of 2009. The company also expects to incur one-time charges of approximately $0.02 in EPS in the third quarter. The take-over will be dilutive in the second half, neutral in 2009, and accretive to net income thereafter.