Affymetrix Updates Financing for eBioscience Purchase
The price of the acquisition has been lowered from the initial price of $330 million announced in November 2011. Initial financing for the acquisition had to be revised after Affymetrix faced a lawsuit from bond holders regarding the use of cash for the transaction (see IBO 1/31/12). According to a May 4 SEC filing, Affymetrix has signed a commitment letter for $90 million in senior secured credit facilities, with the stipulation that Affymetrix secure at least $115 million in gross proceeds from other financing.
Santa Clara, CA 5/3/12—Affymetrix has announced that it amended its existing agreement to acquire eBioscience, a provider of flow cytometry and immunoassay reagents for immunology and oncology research and diagnostics (see IBO 11/30/11), and expects to complete the transaction by June 30. Affymetrix will pay $315 million in cash for the company. “By amending the transaction, we are now able to realize the benefits of combining with eBioscience with significantly less senior secured debt than under the original agreement,” commented Affymetrix President and CEO Dr. Frank Witney. The amended agreement would fund the purchase using cash on hand, $75 million in senior secured financing and additional financing options. “With 2011 revenues of $71 million, gross margins in excess of 70% and EBITDA margin of in excess of 30%, eBioscience makes Affymetrix a much stronger company, both operationally and financially,” said Tim Barabe, Affymetrix executive vice president and CFO. Affymetrix stated that the acquisition addresses its target markets of translational medicine, oncology and immunology.
