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Applied Biosystems to acquire Ambion research division for $273 million
By Angela McDaniels
Seattle, Dec. 30 - Applied Biosystems Group said it will acquire the research products division of Ambion Inc. during the first quarter of 2006 for roughly $273 million in cash.
Ambion's diagnostics and service businesses will become a stand-alone company.
"This acquisition is an important component of Applied Biosystems' strategy to drive growth by expanding our consumables product offering," said Catherine M. Burzik, president of Applied Biosystems, in a company news release.
Applied Biosystems said Ambion's sample prep, RNAi, micro RNA and gene expression and array products will allow it to enter a $500 million market growing faster than 10% annually. Further, Ambion's 2005 revenues are estimated to grow by 22% to more than $52 million.
Applied Biosystems predicted that the acquisition will be dilutive in fiscal 2006 and 2007 and will possibly break even or become accretive in fiscal 2008. The exact amount of dilution will only be known after Applied Biosystems completes an analysis of the allocation of the purchase price, the company said.
"Ambion's products should enable Applied Biosystems to offer customers more complete workflow solutions. We believe Ambion's strong brand recognition should help increase sales of both Applied Biosystems and Ambion consumable products via our global channels," William V. Murray, president of the molecular biology division of Applied Biosystems, said in the release.
Applied Biosystems, a subsidiary of Applera Corp., develops and markets instrument-based systems, consumables, software and services and is based in Foster City, Calif.
Ambion is based in Austin, Texas, and supplies RNA-based reagents for life science research and drug development.
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