QIAGEN Completes Acquisition of eGene
VENLO, The Netherlands, July 9, 2007 - QIAGEN N.V. (Nasdaq: QGEN; Frankfurt, Prime Standard: QIA), the world's leading provider of sample and assay technologies for research in life sciences, applied testing and molecular diagnostics, today announced that its subsidiary QIAGEN North American Holdings, Inc. has completed its acquisition of eGene, Inc. in a transaction at $0.65 in cash and 0.0416 common shares of QIAGEN stock per share of eGene common stock. The transaction has been publicly announced on April 12, 2007. The aggregate purchase consideration amounts to approximately $34.0 million and consists of $15.5 million in cash and 1.0 million common shares of QIAGEN stock valued at $17.0 million (based on the average closing prices of QIAGEN common shares on the NASDAQ Global Select Market for the 20 trading days ending on April 12, 2007), as well as the assumption of certain liabilities in the amount of approximately $1.5 million.
eGene, located in Irvine, California, has developed a multi-channel sample separation and analysis technology for nucleic acids based on capillary electrophoresis that includes an affordable and robust instrument, software analysis package, and a selection of consumable cartridges especially designed for specific high-value applications in the molecular diagnostic and research markets. The HDA-GT12TM Genetic Analyzer incorporates many capabilities into one easy to use platform, integrating automatic sample loading, separation, and data analysis. Next generation products will most likely include an expanded menu of products targeting use in research, applied testing and molecular diagnostics and may be combined with QIAGEN's QIAplex technology.
As QIAGEN announced on April 12, 2007, QIAGEN expects this transaction to contribute approximately $2 million in sales in the second half of 2007 and roughly $7-$9 million in sales for the full year in 2008. QIAGEN expects to incur one-time charges of approximately $0.01 in EPS in the third quarter 2007. These charges primarily relate to in-process research and development and the write-off of certain assets. On an adjusted basis excluding one-time charges, integration and restructuring costs and amortization of acquired IP, the acquisition is expected to reduce EPS in the second half of 2007 by approximately $0.01 and to be neutral to earnings in 2008. Beyond 2008, revenues for this product line are expected to grow rapidly and contribute significant accretion to net income as the instrument base expands and drives increasing consumable usage.
QIAGEN N.V., a Netherlands holding company, is the leading provider of innovative sample and assay technologies and products. QIAGEN's products are considered standards in areas such pre-analytical sample preparation and assay solutions in research for life sciences, applied testing and molecular diagnostics. QIAGEN has developed a comprehensive portfolio of more than 500 proprietary, consumable products and automated solutions for sample collection, nucleic acid and protein handling, separation and purification, and open and target-specific assays. The Company's products are sold to academic research markets, to leading pharmaceutical and biotechnology companies, to applied testing customers (such as in forensics, veterinary, biodefense and industrial applications), as well as to molecular diagnostics laboratories. QIAGEN employs more than 1,900 people worldwide. QIAGEN products are sold through a dedicated sales force and a global network of distributors in more than 40 countries. In this press release QIAGEN is using the term molecular diagnostics. The use of this term is in reference to certain countries, such as the United States, limited to products subject to regulatory requirements. Current QIAGEN molecular diagnostics products are 34 EU CE IVD assays, six EU CE IVD sample preparation products, one 510k PAX RNA product, nine China SFDA IVD assays and 98 general purpose reagents. Further information about QIAGEN can be found at www.qiagen.com.
Certain of the statements contained in this news release may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN's products, markets, strategy or operating results are forward-looking, such statements are based on current expectations that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations and risks of dependency on logistics), variability of operating results, the commercial development of the applied testing markets, clinical research markets and proteomics markets, nucleic acid-based molecular diagnostics market, and genetic vaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's, products (including fluctuations due to the level and timing of customers' funding, budgets, and other factors), our ability to obtain regulatory approval of our infectious disease panels, difficulties in successfully adapting QIAGEN's products to integrated solutions and producing such products, the ability of QIAGEN to identify and develop new products and to differentiate its products from competitors' products, market acceptance of QIAGEN's new products and the integration of acquired technologies and businesses. For further information, refer to the discussions in reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission (SEC).
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