Darmstadt, Germany 10/18/18; Austin, TX 10/18/18—Merck has agreed to sell its flow cytometry business to Luminex for $75 million. The business consists of the Amnis and Guava flow cytometers and associated reagents. “As innovators in flow­-based technologies, we are excited to acquire the flow cytometry assets of our existing long­-term partner Merck, thereby expanding our portfolio of detection systems to address researchers interested in cellular analysis,” commented Luminex President and CEO Homi Shamir. Luminex expects the purchase to contribute $40–$50 million in revenue next year. The transaction is scheduled to close by year end. The price consists of $69.9 million in cash and $5.1 million in committed inventory purchase.

According to Luminex’s conference call discussing the deal, the flow cytometry business is profitable with gross margins in the 50% range. This is Luminex’s first acquisition in the research market and expands its offerings for this market beyond its xMAP bead-based multiplex technology. Currently, Luminex only participates in the life science research market through license partnerships with companies for product development and distribution. 

As explained on the conference call, the purchase gives Luminex access to an adjacent flow-based technology as well as management, R&D, and sales and marketing expertise. Its flow cytometer business currently has 30 direct sales employees. In particular, Luminex noted the value of the Amnis imaging-based flow cytometry system and IP.  

As Mr. Shamir stated on the call, “Nothing prevents Luminex from being closer [to its customers] and using the reputation we achieved with the end-user to introduce to them a new product.” But he stressed that the company will not compete with its partners, which include Bio-Rad Laboratories, Merck Millipore and Thermo Fisher Scientific.