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STRENGTHENS CELL-BASED SCREENING AND REAGENT PLATFORM AT EVOTEC'S HAMBURG SITE
ADDS HIGH-MARGIN BUSINESS WITH AN EXPECTED REVENUE OF MORE THAN €1.0 M IN 2013
INITIAL PURCHASE PRICE OF APPROX €1.2 M IN CASH PLUS AN EARN-OUT PAYMENT DEPENDENT ON BUSINESS PERFORMANCE
HAMBURG, Germany, Jan. 3, 2013 (GLOBE NEWSWIRE) -- Evotec AG (Frankfurt:EVT) (TecDAX) today announced the acquisition of all shares in Cell Culture Service GmbH (CCS), a Hamburg-based company which supports the cell culture needs of a world-wide customer base of biotech and Pharmaceutical companies. CCS is one of the leading suppliers of custom cells and cell-based reagents such as recombinant assay cell lines, assay-ready Frozen Instant Cells, qualified membranes, and proteins for high throughput screening with more than ten years experience in bulk cell production.
Strengthening Evotec's position as quality leader in drug discovery solutions
The acquisition of CCS confirms Evotec's leading position as a fully integrated drug discovery and early development partner for Pharma and biotechnology companies. Integration of CCS' unique capabilities, such as frozen cell preparations and bulk cell transfection for cell-based screening will enable Evotec's partners to access the latest science and the best-in-class technology infrastructure to increase efficiency in the drug discovery process.
CCS' large scale processes for cell production, freezing and storage including the entire team of specialised cell culture scientists and technicians will be fully integrated into Evotec's Hamburg operations to realise cost synergies and efficiency improvements.
"Through the acquisition of CCS, Evotec strengthens its cell culture capabilities and gains access to a growing base of customers using cell- based assays in their drug discovery processes. CCS' experience and technologies for large scale cell production are a perfect fit with Evotec's screening and in vitro pharmacology activities",
said Dr Mario Polywka, Chief Operating Officer of Evotec AG.Dr Oliver Wehmeier, CEO of CCS, adds: "We are excited to join forces with Evotec. Our portfolio of custom products perfectly complements Evotec's integrated service offering. In return, our customers, who have relied on CCS' products and services for many years, will gain access to Evotec's broad range of screening technologies, which add a tremendous value to the assay-ready cells and cell-based reagents we provide."
Transaction structure reflects value potential
The purchase price consists of a cash consideration of €1.15 m and an earn-out component targeting €1.05 m in cash. The earn-out component will become due following one year after the acquisition and depends upon the achievement of certain revenue targets.