GE Healthcare of Chalfont St. Giles, U.K., has entered a definitive agreement to acquire Clarient of Aliso Viejo, CA, for $5 per share of common stock and $20 per share of preferred stock in a transaction valued at $580 million.
The advanced oncology testing and diagnostic services firm markets its products to pathologists, oncologists, hospitals, and biopharmaceutical companies. Since 2005, Clarient's revenues have grown at a 68% compounded annual growth rate.
Clarient's technologies, combined with GE Healthcare's diagnostic imaging portfolio, are expected to accelerate the development of new integrated tools for the diagnosis and characterization of cancer, according to GE.
In a prepared statement, John Dineen, president and CEO of GE Healthcare, said adding Clarient's technology to GE's portfolio "will accelerate our expansion into cancer diagnostics and therapy selection tools, while strongly enhancing our current diagnostic and life sciences offerings. We believe we can build a $1 billion-plus business by developing integrated diagnostic solutions for cancer and other diseases."
Clarient's board of directors has approved the transaction and unanimously recommended that Clarient stockholders tender their shares. So far, stockholders holding approximately 47% of Clarient's current outstanding voting stock have agreed to tender their shares in the proposed transaction.
The transaction is expected to close in late this year or in early 2011, pending regulatory and other approvals.
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