Roche announced that it is going to propose to acquire all outstanding shares of Illumina, a diagnostic company, to further strengthen its role in diagnostics R $44.50 per share in cash. Once the acquisition is complete, the company plans to combine Illumina with its Applied Science business and will move the headquarter of this business to San Diego, CA. The company intends to continue its operation in Penzberg, Germany.
The acquisition is estimated to cost Roche approximately
$5.7B on a fully diluted basis. This is a 64% premium of Illumina's stock price as of December 21, 2011.
Roche said the company has tried to engage with Illumina to reach a negotiated transaction but the effort has not been successful due to Illumina's unwilling to participate in the discussion. The company also plans to nominate highly skilled, independent candidates for election to Illumina's Board of Directors at Illumina's 2012 annual meeting.
Illumina has released a press saying that the Board of Directors will review the proposal and make recommendation to its shareholders. The company's board members recommends its shareholders to take no action at this time as it will reveal its recommendation at a later time.
With the trend gearing toward developing biologics accompanied with a diagnostic test, Roche's move seems to be heading in the right direction.
The acquisition is estimated to cost Roche approximately
$5.7B on a fully diluted basis. This is a 64% premium of Illumina's stock price as of December 21, 2011.
Roche said the company has tried to engage with Illumina to reach a negotiated transaction but the effort has not been successful due to Illumina's unwilling to participate in the discussion. The company also plans to nominate highly skilled, independent candidates for election to Illumina's Board of Directors at Illumina's 2012 annual meeting.
Illumina has released a press saying that the Board of Directors will review the proposal and make recommendation to its shareholders. The company's board members recommends its shareholders to take no action at this time as it will reveal its recommendation at a later time.
With the trend gearing toward developing biologics accompanied with a diagnostic test, Roche's move seems to be heading in the right direction.
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