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Bio-Rad completes AbD Serotec acquisition
HERCULES, Calif.—Bio-Rad Laboratories, Inc. has announced the completion of its acquisition of AbD Serotec, a division of MorphoSys AG, for approximately 53 million euros (roughly $69 million) in cash.
Per the terms of the transaction, Bio-Rad has acquired all of MorphoSys' AbD Serotec research reagent and diagnostic business, which includes AbD Serotec as well as three subsidiaries: MorphoSys UK Ltd., MorphoSys AbD GmbH and MorphoSys US, Inc. the transaction also includes a fully paid, non-exclusive license agreement for the use of MorphoSys' HuCAL technology for diagnostic and research purposes. The $69 million price tag consists of the purchase price, approximately 5 million euros (approximately $6.6 million) worth of compensation for cash reserves in the AbD Serotec companies and a license payment for the use of the HuCAL technology.
"We are pleased to have AbD Serotec join Bio-Rad," Norman Schwartz, president and CEO of Bio-Rad, said in a press release regarding the deal. "With AbD Serotec's comprehensive catalog of antibodies, we are able to offer our customers total assay solutions that can be validated on many of our research platforms for Western blotting, multiplex protein expression, ELISA and cell sorting."
The transaction was originally announced back in December 2012, when the companies announced the signing of a definitive agreement under which Bio-Rad would acquire AbD Serotec. Brad Crutchfield, president of Bio-Rad's Life Science Group, said upon the deal's announcement that the company is "impressed with the quality of AbD Serotec's products as well as the company's reputation." The acquisition, he noted, will grant Bio-Rad "access to a comprehensive catalog of antibodies allowing us to better serve our customers by offering total assay solutions that can be validated on our research platforms for Western blotting, multiplex protein expression, ELISA and cell sorting. In addition, we will be able to exploit a powerful in vitro technology to accelerate future antibody generation."
AbD Serotec is the research and diagnostic antibody segment of MorphoSys' business, a global antibody supplier with offices in Raleigh, N.C.; Oxford, United Kingdom; Düsseldorf, Germany; and Puchheim, Germany. The company's offerings include apoptosis kits, immunology antibodies, autophagy reagents, CD marker antibodies, epitope tag antibodies and veterinary reagents.
Following the sale of AbD Serotec, MorphoSys will be increasing its focus on its therapeutic business segment, according to MorphoSys' CEO Dr. Simon Moroney. Moroney noted in the original announcement of the deal that MorphoSys is "making great progress in our therapeutic antibody pipeline, which is a huge potential value driver … With the sale of AbD Serotec, we will bring a laser-like focus to driving growth in this, our area of core competence."
"We are delighted to have reached the closing of the transaction just a few weeks after the announcement was made. With the divestment of AbD Serotec completed, MorphoSys can devote 100 percent of its attention to building value in its core therapeutics business," Jens Holstein, chief financial officer of MorphoSys AG, said in a statement. Holstein noted in a previous press release that the acquisition by Bio- Rad provides AbD Serotec and its employees "an ideal environment in which to exploit its potential in the research and diagnostic arena."