Roche Agrees to Acquire Igen

Igen's stock is climbing more than 45% after the close.
Author:
Publish date:

Roche Holding

agreed to acquire

Igen International

(IGEN)

in a deal that brings together two companies that have been involved in a long-running legal battle.

Under the terms of the agreement, Roche will acquire Igen, securing the rights to the Origen technology used in Roche's Elecsys diagnostics product line. Igen shareholders will receive $47.25 in cash, and one share of a newly formed public company that will be spun off by Igen, for each share they currently hold.

Based on Igen's 26.7 million shares outstanding, the cash portion of the acquisition would be valued at about $1.26 billion.

Shares of Igen were rising $16.80, or 45%, to $54 in Instinet trading after the closing bell.

The new company, which will be wholly owned by Igen shareholders, will own the Origen technology, assume certain ongoing Igen businesses and is expected to have about $155 million in working capital.

The companies expect to complete the transaction by the end of the year, providing they receive shareholder and regulatory approvals and meet other closing conditions.

On Tuesday, Igen said it was holding discussions with Roche regarding a potential transaction, but the company didn't offer any details.

Earlier this month, a court reversed $486.8 million in damages that Igen previously had been awarded against Roche, but upheld Igen's ability to end a licensing agreement between the companies. The court also said Igen was still entitled to receive $18 million in compensatory damages.

Igen develops biological-detection systems based on its Origen technology. The systems are used in a variety of applications, including clinical diagnostics, pharmaceutical research, biodefense testing and food-safety tests.