Roche and CuraGen have signed a definitive agreement under which Roche will acquire 100% of 454 Life Sciences, a majority-owned subsidiary of CuraGen, active in high-throughput DNA sequencing
Roche will pay 454 Life Sciences shareholders US$140 million in cash.
In addition to the payment from Roche, 454 Life Sciences shareholders may receive up to US$14.9 million in cash from the holders of currently outstanding stock options and warrants if these are exercised.
454 Life Sciences and Roche have an existing research and marketing collaboration under which Roche Diagnostics is the exclusive worldwide distributor of the Genome Sequencer systems based on 454 Life Science's ultrafast 454 Sequencing technology.
This acquisition will give Roche Diagnostics access to 454's future generations of sequencing products and the use of 454 Sequencing for in-vitro diagnostic applications.
"This acquisition is part of our strategy to strengthen our position as a major player in the sequencing market.
"Our existing collaboration is very successful and we welcome 454 Life Sciences and its employees to the Roche Diagnostics Division," said Severin Schwan, CEO Division Roche Diagnostics and member of the corporate executive committee of Roche.
