Bayer Corporation, Diagnostics Division and Visible Genetics Inc. (VGI) have signed a definitive agreement providing for Bayer Diagnostics to acquire VGI in a cash deal valued at $61.4 million, significantly expanding Bayer’s position in the growing Nucleic Acid Diagnostic (NAD) segment of the Professional Laboratory market.
Bayer will purchase, for cash consideration, VGI’s outstanding common shares at a cost of $1.50 per share and Series A preferred shares at par plus accrued dividends.
“This acquisition is another milestone in our ongoing strategy to expand our Infectious Disease portfolio which began with our acquisition of Chiron Diagnostics in 1998,” said Rolf Classon, president of Bayer Business Group Diagnostics.
“It also supports our strategy to bring to market molecular diagnostic tests that assist the physician in the diagnosis and monitoring of disease and treatment regimens.”
“VGI is pleased to be joining the Bayer organization,” said Richard T. Daly, CEO of VGI. “The combination of VGI’s industry leading TRUGENE products with the worldwide resources of Bayer, will allow us to fully develop and grow our sequencing technology. VGI provides a strong complement to Bayer’s molecular diagnostic products and initiatives. After reviewing strategic alternatives, VGI believes this transaction is in the best interest of shareholders, employees and customers.”
As part of the transaction, Bayer Diagnostics is acquiring the TRUGENE HIV-1 Genotyping Assay, the only FDA approved HIV sequencing resistance test that is commercially available in the U.S. Bayer Diagnostics is one of the largest diagnostics businesses in the world.
The organization supports customers in 100 countries through an extensive portfolio of central laboratory, self-testing, nucleic acid and near patient care diagnostics systems and services for use in the assessment and management of health, including the areas of cardiovascular and kidney disease, oncology, virology, women’s health and diabetes.
Bayer Diagnostics is a part of the worldwide Bayer Group.
Visible Genetics Inc. is an international leader in the emerging field of pharmacogenomics, the science of individualizing therapy based on genetic differences, to improve patient care and reduce healthcare costs.