The acquisition builds on a successful two-year collaboration between Affymetrix and ParAllele that has enabled scientists to access more genomic information, in less time and for less money, than ever before. By acquiring ParAllele, Affymetrix expects to strengthen its assay R&D capabilities, accelerate its development and commercialization of new products, and drive sales by opening new market opportunities.
The venture will provide Affymetrix with assay technology for comprehensive genetic studies. Initially applied to genotyping, these highly flexible assays have the potential to be used in a broad variety of microarray applications. When used with Affymetrix’s GeneChip technology, ParAllele’s proprietary assay gives researchers a powerful tool with the potential for examining the entire genome.
The $120 million merger consideration is intended to be paid in Affymetrix stock. The transaction is expected to close in the third quarter of 2005, subject to customary closing conditions and regulatory approvals. The company expects the transaction to be financially neutral to its operating results in 2006 and accretive to net income in 2007.
“The potential for ParAllele’s technology goes far beyond genotyping. We will combine both companies’ technologies to accelerate discovery and product development in a wide variety of areas, from basic research to the clinic,” said Dr Stephen Fodor, chairman and CEO of Affymetrix.