Roche has acquired 454 Life Sciences, a subsidiary of CuraGen Corporation, for $154.9 million in order to secure the company's sequencing technology.
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<p>Roche will pay $140 million in cash, and up to approximately $14.9 million will be received from the exercise of stock options prior to the acquisition. <br /><br />CuraGen commented that the deal would allow it to gain liquidity on its investment and extend its runway to bring its oncology products to market. <br /><br />Roche and 454 Life Sciences signed a collaboration agreement in May 2005 that extends until September, 2010, under which Roche Diagnostics has been acting as the worldwide distributor of the Genome Sequencer systems and associated reagents. Through this acquisition, Roche Diagnostics will now obtain access to 454 Life Sciences' future generations of sequencing products and the use of 454 Sequencing in regulated diagnostic applications.<br /><br />Roche plans to maintain the 454 Life Sciences facility in Connecticut with its 167 employees as a fully integrated part of the Roche Diagnostics organization.<br /><br />The transaction, which is subject to certain closing conditions, is expected to close in the second quarter of 2007. Approval by CuraGen shareholders or Roche shareholders is not required for the transaction to be consummated.</p>