Abcam to Acquire Epitomics for $170 Million

Based in San Francisco, California, with operations in Hangzhou, China, Epitomics has more than 250 employees, of which 170 are located in China. According to Epitomics, due to rabbits’ immune systems, RabMAbs offer better antigen recognition and higher affinity compared with rodent antibodies. The company offers 3,200 RabMAbs, with 900 added in 2011. In 2011, Abcam generated revenues of £83.3 million ($132.2 million = £0.63 = $1). (For Abcam’s six month results, see page 12.)

London, UK 3/5/12—Abcam, a supplier of protein research tools, has agreed to acquire Epitomics for $155 million (net Epitomics’ $15 million in cash) in cash and stock. Epitomics provides rabbit monoclonal antibodies (RabMAbs) and has three units: Reagents, which develops and distributes antibodies for research applications; custom antibodies for research and diagnostic applications; and IVD (in vitro diagnostics), which provides antibodies for clinical diagnostic applications and the prognosis of cancer. In 2011, Epitomics had revenues of $24.7 million, EBITDA of $7.6 million and profit before tax of $6.8 million. Abcam stated that the acquisition would diversify its product offerings and customer base, allow it to enter the IVD market, and enhance the company’s future sales growth and margins. Abcam plans to issue 14.5 million shares in connection with the purchase. The acquisition is expected to be neutral in the first full year and add to earnings in the second full year. The deal is expected to close in one or two months.

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