Affymetrix ($AFFX), a maker of DNA microarrays and diagnostics, is getting a bit of a bargain in its bid to buy eBioscience. The California company announced it will now be paying $315 million in cash for the maker of chemicals used for diagnostics and oncology research, down $15 million from the original $330 million purchase price announced last November.
Amending the "existing definitive agreement" helps Affymetrix seal the deal with less senior secured debt, Frank Witney, company president and CEO, said in a statement. True, the offer will include cash on hand, but there's also $75 million senior secured financing involved, plus "additional financing options" the companies explain. Not much else is changing, however, as the merger moves forward. Affymetrix will keep its headquarters in Santa Clara, and eBiosciences' management team and San Diego space is expected to remain.
And let us remind you the importance of this deal: Affymetrix gains more tech to boost its genomic analysis/microarray diagnostics that enables scientists to make discoveries based on genetic information. When the deal was first announced, Affymetrix founder and chairman Stephen P.A. Fodor said the deal, in part will help significantly boost the company's position in the molecular diagnostics business. EBiosciences is also likely to significantly enhance Affymetrix's revenue.
Assuming everything remains on track, the deal will now close during the quarter ending June 30.
Meanwhile, Affymetrix booked a $4.2 million net loss in its 2012 first quarter on $58.4 million in product revenue.
- read the release