Life Technologies Corporation (NASDAQ: LIFE), a provider of innovative life science solutions, today announced that it has completed the previously announced acquisition of Ion Torrent for $375 million in cash and stock. In addition, sellers are entitled to additional consideration upon the achievement of certain milestones.
Ion Torrent has revolutionized DNA sequencing by enabling a direct connection between chemical and digital information through the use of proven semiconductor technology. The result is a sequencing system that is simpler, faster, less expensive and more scalable than other sequencing technologies. As previously announced, the first product using this technology will be the Personal Genome Machine (PGM) sequencer, which will launch in the fourth quarter of 2010.
Including the impact of specific cost saving initiatives, the transaction is expected to be 2 cents dilutive to Life Technologies' earnings per share in 2010, neutral in 2011, and accretive in 2012 and beyond. Earnings per share guidance for 2010 remains unchanged at $3.35 to $3.50. Life Technologies expects to deliver double-digit earnings-per-share growth in 2011 including the impact of this transaction and excluding the impact of currency and share repurchases.
Moelis & Company acted as exclusive financial advisor, and legal firms Simpson Thacher & Bartlett LLP, Vinson & Elkins LLP, and Fulbright & Jaworski LLP acted as legal advisors to Life Technologies in connection with the transaction. On behalf of Ion Torrent, Robert W. Baird & Co. acted as a financial advisor to the Ion Torrent Board of Directors, and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., and Wilson Sonsini Goodrich and Rosati acted as legal counsel in connection with the transaction.
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