Sygnis said today it plans to acquire Expedeon Holdings, a developer, manufacturer, and commercializer of proteomics reagents and tools.
Expedeon’s protein research offerings include RunBlue® gels for electrophoresis, the VersaWave spectrophotometer for quantitation, and NVoy kits for refolding proteins. Expedeon manufactures and sells its products through a direct sales force as well as through established distribution channels.
The combined company will add Expedeon’s offerings to SYGNIS’ commercial product portfolio, focused on molecular biology and next-generation sequencing applications. SYGNIS’ key products include the TruePrime™ product line and SensiPhi®, licensed to an undisclosed “leading industry partner” for whole genome DNA amplification and sequencing, as well as the SunScript™ Reverse Transcriptase product family, designed to convert genetic information from RNA molecules back to DNA.
The combined company would have pro forma revenues of €5 million ($5.7 million).
“In combining Expedeon and SYGNIS, we are creating a genomics and proteomics specialist with a broad product portfolio,” Pilar de la Huerta, CEO and CFO of SYGNIS, said in a statement. “Expedeon has OEM [Original Equipment Manufacturer] deals in place already with leading reagent companies worldwide; these existing channels will enhance the demand for SYGNIS products in the U.S. and Asian markets. Acquiring Expedeon will reduce the time to market for SYGNIS.”
Expedeon`s experienced international sales force, de la Huerta added, will help the combined company carry out its international sales and commercialization strategy. Expedeon has sales offices in the U.S., U.K., and Singapore.
Sygnis said it will fund the deal with expected proceeds of up to €5 million ($5.7 million) from a planned offering of up to 20.5 million shares. That sum includes €1.7 million ($1.9 million) cash payments to Expedeon shareholders, one-off integration costs, and financing working capital.
New shares not subscribed in the rights offering will be offered to Expedeon shareholders as contribution in-kind against Expedeon shares. SYGNIS said it intends to acquire Expedeon by issuing approximately 80% of the new shares against contributions in kind (Expedeon shares).
The deal is subject to the approval at SYGNIS’ Annual General Meeting, set for June 20.
Privately held Expedeon is headquartered in Swavesey, U.K., near Cambridge, with manufacturing facilities in San Diego.
“By joining forces with SYGNIS, we will be able to offer a wide variety of innovative products along the value chain and will have access to the international capital markets to effectively grow the business,” added Expedeon CEO Heikki Lanckriet, Ph.D.