The amended agreement contemplates funding the acquisition using a combination of cash-on-hand, a senior secured financing of $75 million and additional financing options available to the Company. The senior secured financing, which includes an additional $15 million revolving credit facility, is being provided by a group of lenders led by administrative agent GE Healthcare Financial Services Inc. and Silicon Valley Bank.
"We expect that adding eBioscience to Affymetrix will accelerate our growth," said Tim Barabe, executive vice president and chief financial officer of Affymetrix. "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. The revised purchase price represents approximately 4.5 times 2011 revenue and 13.5 times 2011 EBITDA, and the transaction is expected to be accretive to Affymetrix’s cash earnings per share."
As previously announced, Affymetrix, which is headquartered in Santa Clara, expects to maintain eBioscience's management team and operations in San Diego.
Houlihan Lokey, Inc. is acting as exclusive financial advisor to Affymetrix and Davis Polk & Wardwell LLP is acting as legal counsel to Affymetrix in the transaction. Jefferies & Company, Inc. is acting as exclusive financial advisor to eBioscience and DLA Piper LLP is acting as eBioscience's legal counsel in the transaction.Affymetrix's management team will host a conference call on May 4, 2012 at 5:30a.m. PT to discuss the amended transaction with eBioscience. A live webcast can be accessed by visiting the Investor Relations section of the Company's website at http://www.affymetrix.com. In addition, investors and other interested parties can listen by dialing domestic: (877) 407-8291, international: (201) 689-8345. A replay of this call will be available from 5:00 p.m. PT on May 4, 2012 until 8:00 p.m. PT on May 11, 2012 at the following numbers: domestic: (877) 660-6853, international: (201) 612-7415. The passcode for both replays is 394110. An archived webcast of the conference call will be available under the Investor Relations section of the Company's website.
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