Evotec buys 705 STAKE India's RSIPL for 2.8M euros

Germany's Evotec says it has signed a definitive agreement to acquire a 70% controlling majority stake of the Indian drug discovery service company RSIPL for 2.8 million euros ($4 million) in cash, a portion of which includes a potential earn-out.

This transaction represents an important capacity expansion for Evotec, the firm contends. It adds a complementary drug discovery operation and capability in the field of science-driven chemistry work in a cost-effective location to Evotec's discovery platform and efficiently increases its ability to deliver high quality, know-how driven drug discovery and development services to its partners on a global scale.

'With this acquisition we reinforce our strategic commitment to deliver the highest value, know-how driven services and build the strongest innovation alliances with our customers. Evotec continues to accelerate its strong track record in Innovation and Process Excellence with the best scientists in the industry,' commented Mario Polywka, chief operating officer of Evotec.

RSIPL, located in Thane near Mumbai, was founded in 2004 and currently employs approximately 160 people. The company is a 100% subsidiary of DIL, a publicly-listed company on the Bombay Stock Exchange. Dil 'stock closed the day, August 6, at 203.85 rupees, 4.51%. Following the transaction, RSIPL will be integrated, as Evotec India, into the value chain of Evotec's operations in Hamburg (Germany) and Abingdon (UK). The deal is expected to close latest in early September, 2009. Evotec has a call option to purchase the remaining 30% from DIL in the future in the event of a change-of-control.

Despite this and the recent acquisition of the zebrafish technology platform, Evotec maintains it guidance to have more than 65 million euros in liquid funds available by the end of 2009.