Abcam buys US biotech firm for $6m

By Benjamin Chiou

Date: Tuesday 24 May 2011

Bioscience firm Abcam has acquired US-based mitochondrial research tools provider MitoSciences for a total consideration of $6m (£3.7m), as it attempt to become a "global leader in protein research and detection."

MitoSciences is based in Oregon and is a provider of mitochondrial research tools focusing on areas of metabolism and apoptosis. It has a catalogue of over 200 products and recorded revenues of $2.1m n 2010.

The group will pay $4.2m cash and $1.8m in Abcam shares at 397.1p.

"We are delighted to strengthen our business in this exciting research area and look forward to welcoming the employees of MitoSciences Inc into the Abcam team. This kind of acquisition adds value for our business and customers, and we will continue to appraise new acquisition opportunities as they arise," said Abcam's chief executive offier Jonathan Milner.

Peel Hunt has said that the purchase is in line with its recent 'buy' thesis, and "marks a new chapter in the Abcam growth story" as the company makes use of its cash pile of over £50m.

"We see a good strategic fit, with limited integration risks and the price paid is attractive," said analyst Stefan Hamill.

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BC

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