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Laboratory Corporation of America and Monogram Biosciences have entered into an agreement and plan of merger.
As per the agreement, LabCorp will acquire all of the outstanding shares of Monogram Biosciences in a cash tender offer for $4.55 per share for an implied total equity value of approximately $106.7 million, or a total enterprise value of approximately $155 million, including net indebtedness.
The acquisition is expected to be approximately $0.12 dilutive to LabCorp’s 2009 EPS, including approximately $0.04 of transaction related costs and slightly accretive to 2010 EPS.
Under the terms of the agreement, LabCorp’s subsidiary Mastiff will commence a tender offer to purchase all outstanding shares of Monogram for $4.55 per share in cash.
Moreover, following the completion of the tender offer, LabCorp expects to merge Mastiff and Monogram Biosciences.
William Young, Chairman and CEO, Monogram Biosciences, said: We expect the transaction will significantly accelerate the development of products that will improve treatment outcomes for patients with infectious diseases and cancer.
The closing of the acquisition is expected in the third quarter of 2009.