Gen-Probe makes cash offer for Innogenetics

San Diego, USA-based Gen-Probe, a pioneer in nucleic acid diagnostics for human disease, has launched a conditional tender offer to acquire 100% of the outstanding shares, warrants and convertible bonds of Innogenetics, a Belgian molecular diagnostics company, for around 215.0 million euros ($334.0 million) in cash. Innogenetics shareholders will receive 6.10 per share in cash, a 7% premium to its closing price on June 2, or approximately 188.0 million euros.

The combined entity is expected to be the largest stand-alone molecular diagnostics company in the world, with pro forma 2008 sales in excess of $500.0 million. It would offer a broad range of nucleic acid and immunoassay tests to identify bacterial and viral infectious diseases, genetic and neurological disorders, transplant compatibility, and cancer. These tube- and strip-based products could be sold to a diverse group of small, medium and large customers around the world.

"We believe our proposed acquisition of Innogenetics would provide strategically valuable marketing and sales, distribution and manufacturing capabilities to accelerate commercialization of Gen-Probe products in the European molecular diagnostics market, which we estimate is growing at roughly double the rate of the US market," said Hank Nordhoff, Gen-Probe's chief executive. "In addition, the proposed acquisition would provide access to a number of complementary products, technologies and markers that are generating revenue today or that we believe could be commercialized in the future," he noted.