Have always been impressed by Operon, but..... $110M??
The stakes are getting high, and this is the second munch today that cites microarray technologies........
Monday June 12, 4:00 pm Eastern Time
Company Press Release
SOURCE: QIAGEN N.V.
QIAGEN to Acquire Operon Technologies, Inc.
Transaction Significantly Expands QIAGEN's Position Into Synthetic Probes, Synthetic Genes and
Tools for DNA Microarray Technologies
VENLO, Netherlands, June 12 /PRNewswire/ -- QIAGEN N.V. (Nasdaq: QGENF; Frankfurt, Neuer Markt: QIA
(901626); Easdaq: QGEN) today announced it has entered into a definitive agreement to acquire Operon Technologies, Inc., a
recognized leader in the area of high-end and added-value synthetic DNA, as well as in the area of tools building on synthetic
DNA expertise, such as synthetic genes and DNA microarray tools. Operon Technologies is a rapidly growing, privately held
company located in Alameda, California and today employs over 100 people. The companies expect the transaction to be
completed in the second or third quarter of 2000 and QIAGEN expects the deal to be accretive to QIAGEN's net income per
share.
Subject to the terms of the agreement QIAGEN expects to issue approximately 715,000 shares of its common stock (valued at
approximately $110 million) in exchange for all of the outstanding capital stock of Operon Technologies. The transaction is
intended to qualify as a tax-free reorganization and to be accounted for as a pooling of interests. QIAGEN expects to incur
charges related to the acquisition in the amount of $4.0 million net after taxes following the closing of the transaction, which is
expected to occur in the second or third quarter 2000. Excluding the effect of these charges (approximately $0.11 per share),
QIAGEN expects this transaction to have an immediate and positive impact on QIAGEN's net income per share.
Synthetic nucleic acids have become one of the fastest growing areas of nucleic acid research and genomics. A wide range of
methods and tools in these application areas apply such synthetic nucleic acids to facilitate or accelerate analysis of
biomolecules, including nucleic acids samples purified from natural sources. The demand for synthetic nucleic acids is fueled by
the rapid growth in nucleic acid research including genomics and molecular diagnostics. These market segments apply enabling
technologies and methods, such as DNA sequencing, gene chips and DNA microarrays, SNP analysis, synthetic genes and
labeled probes for detection, all of which rely on the availability of synthetic nucleic acids.
Synthetic nucleic acids are synthesized in predetermined sequences (which are therefore known to the user) and mostly used
for the analysis of nucleic acid samples purified from natural sources which contain previously unknown or unconfirmed
sequences the user wishes to determine, analyze or detect. Since synthetic nucleic acids are used in the analysis of nucleic acids
purified from natural sources, such synthetic nucleic acids are therefore believed to be highly synergistic with QIAGEN's
products and technologies for nucleic acid separation, purification, and handling as both product offerings address to a very
significant extent the same customers.
Operon Technologies' core competencies include its massive parallel, high throughput DNA synthesis technology which is
believed to offer significant advantages for primer and probe synthesis as well as ``longmer'' synthetic nucleic acids of up to 100
bases which can be used for construction of synthetic genes or DNA microarrays. QIAGEN and Operon Technologies believe
that this high throughput synthesis technology allows the manufacture of synthetic nucleic acids at unparalleled speed, cost and
quality. The capacity of the Alameda manufacturing site is projected to further increase and by the end of 2001 to reach an
output of 150,000 synthetic nucleic acids per day. In addition, Operon Technologies has built a leading position in synthetic, full
length genes and enhanced DNA microarray tools.
Operon Technologies recorded revenues of $13.3 million and net income of approximately $1.3 million in fiscal 1999. Based
on Operon Technologies' first quarter 2000 (ended March 31, 2000) financial results, the company expects to exceed $20
million in net sales for the fiscal year 2000 which ends December 31, 2000.
``This exciting product and technology platform significantly extends QIAGEN's presence into a very dynamic area of today's
genomics and genetic analysis markets,'' said Dr. Metin Colpan, Chief Executive Officer of QIAGEN. ``Our shared vision of
the nucleic acid research and genomics markets which we are both serving, and our focused, market- and technology-leading
positions make us excellent partners to supply our customers and partners as a combined entity. Very importantly for
QIAGEN, Operon Technologies has built a superb reputation for focus and quality in the markets it serves.''
``We are very impressed by Operon Technologies' leading and powerful technology platforms and by the fact that the company
has already demonstrated its commercial potential and capabilities as evidenced by an impressive list of existing and potential
customers and a very rapid revenue growth,'' said Dr. Uli Schriek, QIAGEN's Vice President Corporate Business
Development. ``This track record demonstrates that Operon is capable of delivering high-quality, scalable and cost-efficient
results.''
``Operon Technologies is currently faced with a significant customer demand from the leading genomics and pharmaceutical
customers for its products,'' added Robert Saul, Founder, Chairman and CEO of Operon Technologies. ``In joining forces with
the technology, manufacturing and marketing leadership of the QIAGEN group, we believe we now have the best opportunity
to optimize our position in the United States and also to build a significant, global presence. We are excited about the
opportunities that we have in this combination.''
``We believe that Operon has the leading US technology and market position in high quality, high precision, and high throughput
synthetic nucleic acids. Virtually every genomic and genetic analysis technique requires both purification of the native nucleic
acid sample and one or more synthetic nucleic acid primers or probes. Therefore, there are exciting synergies between the
QIAGEN and Operon product lines as well as opportunities for new and powerful joint products. We believe that the
combination with QIAGEN and its dominant worldwide market position will greatly accelerate our growth in the US and allow
us to expand our technology and product presence to the yet untapped international markets,'' added Nathan Hamilton,
President and Chief Operating Officer of Operon Technologies.
Operon Technologies, Inc. was established in 1986 and employs today over 100 people at its facilities in Alameda, California.
Operon Technologies has built a leading position in the manufacture and marketing of synthetic nucleic acids, DNA microarrays
and synthetic genes. The Company is privately held. Further information on Operon Technologies can be found at
operon.com.
QIAGEN N.V., a Netherlands holding company with subsidiaries in Germany, the United States, Japan, the United Kingdom,
Switzerland, France, Italy, Australia and Canada, believes it is the world's leading provider of innovative enabling technologies
and products for the separation, purification and handling of nucleic acids. The Company has developed a comprehensive
portfolio of more than 280 proprietary, consumable products for nucleic acid separation, purification and handling, nucleic acid
amplification, as well as automated instrumentation and related services. QIAGEN's products are sold in more than 42
countries throughout the world to academic research markets and to leading pharmaceutical and biotechnology companies. In
addition, the Company is positioning its products for sale into developing commercial markets, including DNA sequencing and
genomics, nucleic acid-based molecular diagnostics, and genetic vaccination and gene therapy. QIAGEN employs
approximately 1000 people worldwide. Further information on QIAGEN can be found at qiagen.com.
Certain of the statements contained in this news release may be considered forward-looking statements within the meaning of
Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934,
as amended. To the extent that any of the statements contained herein relating to QIAGEN's products and markets and
operating results are forward-looking, such statements are based on current expectations that involve a number of uncertainties
and risks. Such uncertainties and risks include, but are not limited to, risks associated with the challenges expected in integrating
newly-acquired businesses into QIAGEN's operations, management of growth and international operations (including the
effects of currency fluctuations), variability of operating results, the commercial development of the DNA sequencing and
genomics market, nucleic acid-based molecular diagnostics market, and genetic vaccination and gene therapy markets,
competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's products (including seasonal
fluctuations), difficulties in successfully adapting the Company's products to integrated solutions and producing such products,
and the Company's ability to identify and develop new products and to differentiate its products from competitors. For further
information, refer to the discussion in reports that the Company has filed with the U.S. Securities and Exchange Commission
(SEC).
Contacts: Peer M. Schatz, Chief Financial Officer of QIAGEN N.V., 011-49-2103-2911-702, p.schatz@de.QIAGEN.com;
or Mary Claire Bice (investors), 212-696-4455, ext. 238, news@noonanrusso.com, and Tony Ho Loke (media),
212-696-4455, ext. 213, news@noonanrusso.com, both of Noonan/Russo Communications, Inc., for QIAGEN N.V.
SOURCE: QIAGEN N.V. |
