Varian Acquires X-Ray Crystallography Technology
Single crystal x-ray crystallography complements Varian’s NMR business, especially in the area of drug discovery and allows it to offer a product line that its rival in the NMR market, Bruker, also provides. Varian will find itself a small player in the market, where Bruker and Rigaku are the leaders. The acquisition also adds to the company’s product offerings for the pharmaceuticals industry, in line with its strategy to grow its sales in this market.
Palo Alto, CA 4/7/08; Abingdon, UK 4/7/08—Varian has acquired Oxford Instruments’ spin out Oxford Diffraction for $37 million in cash and assumed net debt. Oxford Diffraction, of which Oxford Instruments held a 23% stake, develops and manufactures x-ray crystallography instrumentation for pharmaceutical research. The company posted revenues of $15 million for the year ended March 31. “Oxford Diffraction has experienced rapid growth since its formation in 2001 and has established a strong reputation in single crystal X-ray crystallography, particularly in Europe. Oxford Diffraction products will now be distributed on a global basis via Varian’s worldwide distribution network,” commented Varian President and CEO Garry W. Rogerson. The purchase price includes potential additional purchase price payments of up to $10 million over three years based on performance. Oxford Instruments stated it would use the proceeds to reduce debt, and that the divestment is expected to result in a profit before costs of £3.2 million ($6.4 million) on the initial consideration of £3.5 million ($7.0 million).
