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news.Australian bio-nanotech company pSivida is to acquire the US drug delivery company, Control Delivery Systems for approximately $104 million.
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pSivida said that the acquisition would be funded through the issue of approximately 16 million pSivida shares to Control Delivery Systems stockholders, representing approximately 40% of the combined company estimated to be worth about $250 million.
The move is part of pSivida’s on-going US growth strategy providing the company with an operating base in the Boston biotech hub, enhancing its overall visibility as well as access to the US scientific and investment communities.
The acquisition is expected to close in the fourth quarter of 2005 and is subject to Australian regulatory and pSivida shareholder approvals, as well as other customary closing conditions.
“This acquisition is an excellent opportunity for pSivida to capitalize on the combination of complementary technologies and skills,” said Gavin Rezos, managing director of pSivida. “The diversified product portfolio and development capabilities of the combined company present value creating opportunities, reducing our overall risk profile whilst generating significant current and near term revenues.”