LONDON (Alliance News) - Horizon Discovery Group PLC said Monday it has acquired Sage Labs Inc for up to USD48 million in cash and shares, in order to form a "fully integrated and world leading translation genomics platform".
The research tools and services company will pay USD16 million in cash and up to USD32 million through the issue of new Horizon Discovery shares.
Sage provides advanced in vivo transgenic disease models for use in preclinical research. Sage was a former business within NASDAQ listed Sigma-Aldrich Corp known as Sigma Advanced Genetic Engineering, and became Sage Labs Inc when it was bought out by its management and Telegraph Hill Partners in 2013.
Sigma posted USD4.7 million in revenue in the nine months to the end of 2013 after the buy out. Strong growth throughout 2014 is expected to move the business from a USD1.6 million loss to break-even, and add to profits in 2015.
Sage had total assets of USD14.5 million as at December 2013.
Sage's former Chief Executive David Smoller will become chief business officer at Horizon.
The acquisition is expected to be completed on Thursday.
"The acquisition positions Horizon as the world-leader in gene-editing and at the forefront of technological advances in the field of translational genomics," said Chief Executive Darrin Disley in a statement. "The consolidated offering significantly strengthens Horizon commercially, allowing us to offer product, service and R&D programs to customers engaged at every stage of translational genomics and personalized medicine research from sequence to treatment."
Shares in Horizon were trading up 0.9% at 164.00 pence Monday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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