By Lisa Kerner
Charlotte, N.C., June 23 - Laboratory Corp. of America Holdings agreed to acquire Monogram Biosciences, Inc. in a $4.55-per-share cash tender offer.
The transaction has a total equity value of approximately $106.7 million, or a total enterprise value of approximately $155 million at March 31 including net debt, the companies said.
Monogram's board of directors unanimously recommended the tender offer to its shareholders.
LabCorp and Monogram expect to close the deal in the third quarter of 2009.
According to LabCorp, the acquisition is expected to be dilutive to its 2009 earnings per share by approximately $0.12 and slightly accretive to 2010 earnings per share.
"We expect the transaction will significantly accelerate the development of products that will improve treatment outcomes for patients with infectious diseases and cancer," Monogram chief executive officer and chairman William D. Young said in a news release.
Burlington, N.C.-based LabCorp develops diagnostic technologies through genomic testing.
Monogram is a South San Francisco, Calif.-based company that develops and markets products to guide and improve the treatment of serious infectious diseases and cancer.
| Acquirer: | Laboratory Corp. of America Holdings
|
| Target: | Monogram Biosciences, Inc.
|
| Announcement date: | June 23
|
| Price per share: | $4.55
|
| Expected closing: | Third quarter of 2009
|
| Stock price of target: | Nasdaq: MGRM: $3.96 on June 22
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