Gen-Probe Incorporated (Nasdaq: GPRO) announced today that it has signed a definitive agreement to acquire Prodesse, Inc., a privately held leader in molecular testing for influenza and other infectious diseases, for approximately $60 million in cash. Gen-Probe's purchase price could increase to up to $85 million if Prodesse achieves certain financial and regulatory milestones in 2010 and 2011.
"We believe acquiring Prodesse supports our strategic focus on commercializing differentiated molecular tests for infectious diseases," said Carl Hull, Gen-Probe's president and chief executive officer. "The acquisition is expected to boost our near-term earnings and revenue growth by providing additional leading-edge assays for our experienced sales force to promote to our global customer base."
In connection with the acquisition, Gen-Probe and Prodesse have signed an agreement under which Gen-Probe's sales representatives in the United States, Canada and Europe will begin co-promoting Prodesse's products in mid-October.
"Our acquisition by Gen-Probe validates the significant progress we have made in developing and commercializing molecular assays that help doctors and laboratories diagnose respiratory and other infectious diseases more accurately than traditional methods," said Tom Shannon, Prodesse's president and chief executive officer. "We believe we can prepare for and accelerate our next stage of growth by leveraging the resources and expertise of one of the most established and highly respected molecular diagnostics companies in the world."
Both companies' boards of directors have unanimously approved the transaction, and the Prodesse shareholder votes necessary to approve the transaction have already been obtained. The transaction is expected to close within a month, subject to customary conditions.