CORRECTED-UPDATE 1-Abcam to buy U.S. peer Epitomics for $155 mln
* Deal to add to Abcam’s earnings from second year
* Acquisition in cash and stock
* Abcam to issue 14.5 mln new shares as part of deal
March 5 (Reuters) – British biotech company Abcam Plc said it would buy U.S. peer Epitomics International Inc for $155 million to boost its antibody technology.
San Francisco, California-based Epitomics, with operations in China, develops and distributes rabbit monoclonal antibodies for research and diagnostic applications. It had revenue of $24.7 million in 2011.
Abcam’s products cover research areas such as cancer, cardiovascular, immunology, neuroscience, and stem cells.
The British firm said it has put in place a new 20 million pounds ($31.71 million) credit facility to fund the acquisition.
It would issue about 14.5 million new shares as part of the deal.
Abcam said the cash-and-stock deal would be neutral to its earnings in the first year, but would add to profit from the second year of completion.
The Cambridge, UK-based company also reported first-half pretax profit of 17.6 million pounds, up 16 percent from last year.
Sales jumped 14 percent to 44.7 million pounds.
It increased its interim dividend by 16.6 percent to 1.69 pence a share.
Shares of Abcam closed at 332.25 pence on Friday on the London Stock Exchange.