In Turnabout, Biosite to Be Acquired by Inverness, While Beckman Chooses to Let Go

In a dramatic reversal of an earlier deal based on Beckman Coulter's acquisition of Biosite, a surprise bid by Inverness Medical Innovations allowed the new suitor to walk away with the coveted acquisition. Inverness will be paying US$1.68 billion to acquire Biosite, while Biosite in turn will be indemnifying Beckman to the amount of $54 million in cancellation fees.

Biosite was put in play in late March 2007, when Beckman initiated a $1.55 billion acquisition bid. This prompted Inverness to launch an unsolicited bid for $1.65 billion. In early May 2007, Beckman responded by matching Inverness' price. Within days Inverness countered with its winning offer, while Beckman passed on bidding any further.

Inverness considers the Biosite take-over an opportunity for growth and cost savings, and hopes to benefit from the synergies derived from the combination. Ron Zwanziger, President and CEO of Inverness commented, "We expect that a combination with Biosite will quickly leverage Biosite's strength in proprietary protein markers and robust cardiovascular platform together with our ongoing research and development efforts in the cardiac arena.” As a result of the merger, Inverness will almost double its size to reach combined annual revenues of around $1 billion.

Inverness Medical Innovations, Inc. (Waltham MA, USA) provides a range of advanced medical diagnostic products, consumer pregnancy and fertility/ovulation tests, and rapid point-of-care (POC) diagnostics.

Biosite, Inc. (San Diego CA, USA) provides rapid diagnostics products and antibody development technologies. Its Triage products are used in 50 percent of U.S. hospitals and in 50 international markets.

Beckman Coulter, Inc. (Fullerton CA, USA) is a leading global provider of biomedical tests and instrument systems that automate laboratory processes.

In a related move aimed at enhancing its distribution network in the Benelux region (Belgium, Netherlands, Luxemburg), Inverness announced the acquisition of Orange Medical (Tilburg, The Netherlands) for approximately $5.7 million.

Orange Medical distributes products in the areas of immunodiagnostics, reproduction, fertility prenatal diagnostics, and POC diagnostics, to hospitals and laboratories in Benelux countries. The acquisition is consistent with Inverness' efforts to continue to improve margins by bringing distribution in-house.


Related Links:
Beckman Coulter Inc.
Inverness Medical Innovations
Biosite Inc.