By Lisa Kerner
Charlotte, N.C., Aug. 28 - Inverness Medical Innovations, Inc. entered into an asset purchase agreement to acquire Matritech, Inc. for $36 million, payable in shares of Inverness common stock.
Matritech will receive up to $2 million of incremental consideration, in cash and/or Inverness common stock, based on revenue targets for a 12-month period following the transaction's close, which is slated for the fourth quarter. The company's board approved the dissolution of the Matritech corporation, subject to stockholder approval, after the closing of the asset sale.
Matritech expects to sell all of the shares of Inverness stock to raise cash for its obligations. Net proceeds available for distribution to Matritech common stockholders should be in the range of $10 million to $12 million, or some $0.16 to $0.19 per share.
"We are excited about the addition of Matritech's bladder cancer technology to the Inverness portfolio, and look forward to realizing the market opportunities available to us through combining the Matritech products with our global distribution capabilities," Inverness president and chief executive officer Ron Zwanziger said in a company news release.
Inverness was advised by Covington & Associates and Foley Hoag LLP, while Matritech was advised by CIBC World Markets Corp. and Choate, Hall & Stewart LLP.
Matritech markets and develops protein-based diagnostic products for the early detection of cancer. The company is based in Newton, Mass.
Inverness is a diagnostic device developer based in Waltham, Mass.
| Acquirer: | Inverness Medical Innovations, Inc.
|
| Target: | Matritech, Inc.
|
| Transaction total: | $36 million
|
| Announcement date: | Aug. 28
|
| Expected closing: | Fourth quarter
|
| Stock price for acquirer: | Amex: IMA: $46.93 on Aug. 27
|
| Stock price for target: | Amex: MZT: $0.20 on Aug. 27
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
