Invitrogen Corp. (Nasdaq: IVGN) has agreed to acquire CellzDirect Inc., a Durham, N.C.-based provider of hepatocyte-based cell products and related services used in the testing of new drugs. The deal is valued at $57 million in cash, and is expected to close later this quarter. CellzDirect generated around $18 million in 2007 revenue, and has raised around $13 million in VC funding since 2002 from firms like Technology Funding, Solstice Capital, Valley Ventures, Village Ventures and Grayhawk Venture Partners.
Invitrogen Corporation (NASDAQ:IVGN), a provider of essential life science technologies for research, production and diagnostics, today announced it has entered into a definitive agreement to purchase privately-held CellzDirect, Inc., based in Research Triangle Park, North Carolina, in a cash transaction for approximately $57 million.
CellzDirect provides hepatocyte-based cell products and related services used in the testing of new drugs. Primary human hepatocytes are the most accepted model for predicting a compound's effects on enzymatic metabolism in the liver. Such testing, recommended by the Food and Drug Administration (FDA), can prevent costly failures in clinical trials. For this reason, CellzDirect's products are mainly used by pharmaceutical and biotech companies in research and development. Primary hepatocytes are also used in biomedical research to study liver diseases and to understand downstream implications of cellular function.
“CellzDirect's high-value products and services will greatly complement Invitrogen's market-leading portfolio of complete cell systems, including primary cells, media, matrices and growth factors,” said Greg Lucier, Invitrogen's Chairman and Chief Executive Officer. “The purchase of CellzDirect follows our strategy of investing in high growth areas of the market, specifically specialty cell systems.”
“CellzDirect has distinguished itself from other primary cell providers through scientific leadership, consultation with scientific and industry leaders, and constant communication with the medical community and regulatory bodies,” added Nicolas Barthelemy, Invitrogen's Senior Vice President, Cell Systems.
CellzDirect was founded in 2001 and employs approximately 90 people at its sites in North Carolina and Austin, Texas. Twelve month revenue for calendar year 2007 is expected to be approximately $18 million.
“Combining with Invitrogen will enhance our already strong position in the primary cell market,” said Scott Edelman, CellzDirect's Chief Executive Officer. “We expect CellzDirect's growth rates to benefit from cross-promotion and combination with Invitrogen's technologies for cell culture, molecular biology, and fluorescent detection, and from Invitrogen's world-class sales, marketing, and distribution capabilities.”
The transaction is subject to customary closing conditions and is expected to close in the first quarter. The acquisition is expected to be EPS neutral in fiscal year 2008, becoming accretive in fiscal year 2009.
About Invitrogen Corporation
Invitrogen Corporation (NASDAQ: IVGN) provides products and services that support academic and government research institutions and pharmaceutical and biotech companies worldwide in their efforts to improve the human condition. The company provides essential life science technologies for disease research, drug discovery, and commercial bioproduction. Invitrogen's own research and development efforts are focused on breakthrough innovation in all major areas of biological discovery including functional genomics, proteomics, bioinformatics and cell biology — placing Invitrogen's products in nearly every major laboratory in the world. Founded in 1987, Invitrogen is headquartered in Carlsbad, California, and conducts business in more than 70 countries around the world. The company employs approximately 4,700 scientists and other professionals and had revenues of more than $1.15 billion in 2006. For more information, visit www.invitrogen.com.
About CellzDirect, Inc.
CellzDirect, Inc. is a privately held bioscience company that was founded in 2001 and employees approximately 90 people at its sites in North Carolina and Austin, Texas. CellzDirect provides bio/pharmaceutical companies with quality cell products and services focused primarily on drug metabolism, drug-drug interactions and drug transporters. With CellzDirect's support, scientists are better able to conduct research that accelerates the discovery and development of safe and effective drugs. For additional information, please refer to the company's web site at www.cellzdirect.com or call 1-866-95CELLZ.