In addition to the closing purchase price, Isis will receive earn out payments from Abbott tied to post-closing sales of Ibis systems, including instruments and assay kits.
Abbott has previously invested $40m in Ibis in exchange for approximately 18.6% of Ibis’s outstanding equity. This investment, along with the $175m that would be due at closing, would result in a total acquisition price of $215m plus earn out payments.
The closing of the acquisition of the remaining equity ownership in Ibis is subject to the satisfaction of the terms and conditions of a stock purchase agreement that has been executed by the parties, including obtaining clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and is expected to occur in January, 2009.
Michael Treble, president of Ibis, said: Abbott’s confidence in Ibis is reflected in its decision to invest in Ibis’ technology and to exercise its option to purchase Ibis. We have already presented development plans for the next-generation instrument that will facilitate our rapid growth into clinical diagnostics.