Agilent Technologies Adds Strength to Its Life Science Business With Acquisition of Stratagene
June 07 2007 - 6:00AM
Business Wire
Agilent Technologies Inc. (NYSE:�A) today announced it has
completed the acquisition of Stratagene Corp. (NASDAQ:�STGN), a
leading developer, manufacturer and marketer of specialized life
science research and diagnostic products. Agilent expects this
strategic acquisition to accelerate its growth in life sciences
through a complementary product portfolio and strong market reach
into academia and government. Agilent announced the definitive
agreement to acquire Stratagene on April 6, 2007. The company paid
approximately $250 million for Stratagene, or $10.94 per share of
common stock. Completion of this acquisition will have no impact on
Agilent�s earnings-per-share guidance. Agilent�s revenue guidance
for the third quarter is now $1.38 billion to $1.42 billion.
Stratagene is a worldwide leader in developing innovative products
and technologies for the growing life science research market.
Agilent believes the total addressable life science market to be
$14 billion, with an estimated compounded annual growth rate of 7
to 9 percent over the next three years. �We are excited about the
opportunities ahead,� said Nick Roelofs, vice president and general
manager of Agilent�s Life Sciences Solutions Unit. �With our
combined product portfolios, technology, R&D expertise and
employees, we will serve a wider customer base with more
comprehensive workflow solutions. This acquisition is truly an
example of one-plus-one is greater than two because of the workflow
leverage we anticipate from combining our two companies.�
Stratagene supports advances in life sciences by inventing,
manufacturing and marketing products that simplify, accelerate and
improve research. Since 1984, the company�s products have been used
throughout the academic, industry and government research sectors
in fields spanning molecular biology, genomics, proteomics, drug
discovery and toxicology. Stratagene employs more than 450 people
worldwide, who have now joined Agilent. The Stratagene acquisition
is expected to strengthen Agilent�s life science offerings in
genomics and proteomics, particularly in academia and government
where Stratagene products and market leadership are well
recognized. Meanwhile, Agilent�s sales channel strength in the
pharmaceutical market provides additional opportunities for
expanding the reach of Stratagene�s portfolio of reagents and
instruments. Stratagene is the largest acquisition that Agilent has
made in several years, underscoring the company�s commitment to
life sciences. Stratagene�s extensive portfolio of PCR enzymes and
instrument capabilities, including quantitative PCR, coupled with
Agilent�s range of product platforms, software and data management
capabilities, provides full workflow solutions to both academic and
pharmaceutical customers. Stratagene�s product portfolio includes
reagents for life science research and instruments. The company
also offers a range of diagnostics products, including applications
for allergy testing and urinalysis. Stratagene�s life science
reagent and instrument manufacturing facility in Cedar Creek,
Texas, as well as its diagnostics facilities in Garden Grove,
Calif., and Edinburgh, Scotland, are all registered to the ISO
13485 standard. The diagnostics facilities are also licensed
medical device manufacturers, compliant with the U.S. Food and Drug
Administration�s Quality System Regulation (QSR). Other major
Stratagene locations are La Jolla, Calif.; Tokyo, Japan; and
Amsterdam, the Netherlands. Agilent and Stratagene also have
announced the sale of certain Stratagene assets to a new company,
Decisive Diagnostics (a subsidiary of Catalyst Assets LLC), an
entity formed by Dr. Joseph A. Sorge, former chairman, CEO and
founder of Stratagene. Decisive Diagnostics is an entity formed to
pursue molecular diagnostic applications. Decisive Diagnostics will
acquire for $6.6 million certain assets of Stratagene from Agilent
and license from Agilent certain of Stratagene�s molecular
diagnostic technologies. More information about Stratagene is
available at www.stratagene.com. Agilent in Life Sciences Agilent
is the global leader in gas chromatography and gas
chromatography/mass spectrometry, and liquid chromatography and
liquid chromatography/mass spectrometry used to analyze the
composition of air, water, food, drugs, industrial process streams
and forensic evidence. The company is also a leading developer of
hardware and software tools for life science analysis including
genomics, proteomics and metabolomics. The company pioneered
ink-jet in situ synthesis of nucleic acid microarray probes and
microfluidic lab-on-a-chip Bioanalyzer and nano LC/MS applications
that accelerate customer workflows. About Agilent Technologies
Agilent Technologies Inc. (NYSE:�A) is the world�s premier
measurement company and a technology leader in communications,
electronics, life sciences and chemical analysis. The company�s
19,000 employees serve customers in more than 110 countries.
Agilent had net revenue of $5.0 billion in fiscal year 2006.
Information about Agilent is available on the Web at
www.agilent.com. Forward-Looking Statements This news release
contains forward-looking statements as defined in the Securities
Exchange Act of 1934 and is subject to the safe harbors created
therein. The forward-looking statements contained herein include,
but are not limited to, information regarding Stratagene�s
technological expertise and its enhancement of our combined product
portfolio, the contribution Stratagene would make to Agilent�s
ability to address customer demands, the ability of Agilent to
provide improved products, services and support to its customers,
Agilent�s future revenues and earnings and guidance for Agilent for
the third quarter of 2007. These forward-looking statements involve
risks and uncertainties that could cause Agilent�s results to
differ materially from management�s current expectations. Such
risks and uncertainties include, but are not limited to, risks
associated with the integration of Stratagene, risks associated
with changes in demand for Agilent�s and Stratagene�s products, and
risks associated with the development generally of Agilent�s
overall strategic objectives. In addition, other risks that Agilent
faces in running its operations include the ability to execute
successfully through business cycles; ongoing competitive, pricing
and gross margin pressures; the impact of geopolitical
uncertainties on our markets and our ability to conduct business;
the ability to improve asset performance to adapt to changes in
demand; the ability to successfully introduce new products at the
right time, price and mix and other risks detailed in Agilent�s
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the period ended October 31, 2006,
and its Quarterly Report on Form 10-Q for the period ended April
30, 2007. Forward-looking statements are based on the beliefs and
assumptions of Agilent�s management and on currently available
information. Agilent undertakes no responsibility to publicly
update or revise any forward-looking statement. NOTE TO EDITORS:
Further technology, corporate citizenship and executive news is
available on the Agilent news site at www.agilent.com/go/news.
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